Top Headlines 

CME-Nex Deal Receives US Antitrust Clearance – Financial Times (subscription)

CME Group’s planned £3.9bn purchase of Nex Group, the UK trading and technology company, has taken a major step towards completion after it passed regulatory hurdles in the US and Europe.

Foreign Exchange Rigging ‘Cartel’ Started With Beers, Jury Told – Bloomberg

An encounter over pints of beer in a London pub led to the formation of a group of traders called “The Cartel,” who illegally manipulated the $5.1 trillion-a-day currency market, according to a former UBS Group banker. 

The Information Leakage Conundrum in the FX Market – Profit & Loss

A lot of people have been talking to me about an old theme recently, only it has been given a new name – information leakage.  

In the FICC of It (podcast) – Profit & Loss

This week’s topics include the obvious discord between Sweden’s central bank and local economists, the start of the Cartel trial and the differences between this and the pending appeal of Mark Johnson. Technology is also in the podcasters’ crosshairs as they look at blunt instruments to manage market risk.

US to Seek Currency Chapters in Trade Talks with Japan, Others: Mnuchin – Reuters

US Treasury Secretary Steven Mnuchin said on Saturday that Washington wants to include a provision to deter currency manipulation in future trade deals, including with Japan, based on the currency chapter in the new deal to revamp NAFTA. 

Regulatory News 

EU Lawmakers Open to Delaying Ban on Critical Benchmarks – (subscription)

MEPs propose two-year reprieve for Eonia and Euribor if contractual continuity is at risk.

Searching for the End of Giancarlo’s White-Paper Trail – (subscription)

The CFTC chairman faces a key test to turn thought leadership into real reform. 

FCA Brexit Prep Changes Market’s Relationship with Esma – Global Investor (subscription)

FCA is deleting references to Esma and assuming reporting responsibilities, which could present challenges for larger firms. 

Former SEC Head Resigns from LSEG Board to Join Bloomberg – The Trade

The former head of the US financial regulator Mary Schapiro has resigned from her position at the London Stock Exchange Group and has joined Bloomberg to oversee the company’s public policy and regulatory priorities globally.

US Charges Three Futures Traders With Spoofing – The Wall Street Journal (subscription)

Three futures traders were charged with manipulating stock-futures contracts that resulted in more than $60 million in losses for the firm that traded with them, according to prosecutors.

A Darker Reality for Dodd-Frank’s Burst of Sunlight on Derivatives – Financial Times (subscription)

A decade since the crisis, efforts to make the CDS market more clear are faltering.

Crypto News

Barclays Halts Work on Cryptocurrency Trading Project – Financial News (subscription)

The investment bank put together a senior team earlier this year to look at how it could incorporate the trading of digital assets into its markets business. The initiative, however, has been put “on ice”. 

Post-Trade Group Calls for Greater Crypto Engagement – Global Investor (subscription)

ISSA argues that CSDs and other market infrastructures should see digital assets as a “target market”.

Is Congress Really Ready to Take on Crypto? – American Banker

Momentum appears to be building for lawmakers to take a hard look at cryptocurrency and the technology behind it. 

Company News 

BestX Clients Seek Independence Reassurance – FX Week (subscription)

Clients and liquidity providers are seeking reassurance from foreign exchange transaction cost analysis (TCA) firm BestX that its product offering will remain independent after the business is acquired by State Street for an undisclosed amount.

TP ICAP Looks to Overhaul Management Incentive Scheme – Financial Times (subscription)

TP ICAP, the interdealer broker, is assessing whether to overhaul its controversial incentive scheme for senior executives following the sacking of former chief John Phizackerley.

360T Volumes Up in September – Profit & Loss

Deutsche Borse has reported that its foreign exchange business, 360T, handled average daily volume of $75.7 billion in September. This represents a 10.3% increase on August’s data and a 17% year-on-year increase, although at face value this may not be the case.

Market Savvy 

Sterling Pinned Near One-Week Lows as Brexit Talks Stall – Reuters

Sterling held near a one-week low on Monday as Brexit negotiations appeared to have hit an impasse before a crucial European Union summit later this week.

Emerging Market Bulls Start to Overtake the Bears, Survey Shows – Bloomberg

The bulls are finally starting to outweigh the bears in emerging markets. After two quarters of declines, developing nation assets will find a floor and remain stable in the final three months of the year as central banks from Argentina to Turkey move to defend their currencies, a Bloomberg survey shows.

Pound-Euro Parity By Mid-2019 if No Deal on Brexit, says Argentex – Euromoney

A boutique broker renowned for the accuracy of its currency forecasts has warned that a no-deal Brexit could see the pound fall to parity with the euro by the middle of next year.

Yen Gains as Geopolitical Tension Weighs on Currency Markets – Reuters

The yen hit a one-month high and the Swiss franc gained on Monday as rising geopolitical tension and investor anxiety about the global economy left investors skittish at the start of the week.

Turbulence Sharpens Debate About Decade-Old US Bull Run – Financial Times (subscription)

After a week of turbulence in global stock markets, investors will start the new week on edge. Here are some of the key questions they face.