Top Headlines

CME to Launch Bitcoin Futures – Profit & Loss

CME Group plans to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods.

Bitcoin Futures May Be Coming But Trading Hurdles Remain – Wall Street Journal (subscription)

Valuing bitcoin derivatives and liquidity issues could pose the biggest problems.

Dollar Steady Before Fed Decision, Kiwi Catapults – Reuters

The dollar steadied against a basket of major currencies as investors eyed a policy decision from the US Federal Reserve later in the day, while New Zealand’s battered dollar surged on stronger-than-expected jobs data.

Sterling Hits Four-and-a-Half-Month High vs Euro on Strong Manufacturing Data – Reuters

Britain’s pound hit a 4½ month high against the euro, after a survey showed UK factories reported stronger growth than expected last month as well as rising inflation pressures.

Europe’s Biggest Fund Managers Set for Face-Off on How to Trade the Pound – Bloomberg

Some of Europe’s biggest fund managers are set for a face-off on how best to trade the UK’s first potential interest-rate increase in a decade.

LSE Admits EU Supervisory Case on Repo Market After Brexit – Financial Times (subscription)

The London Stock Exchange Group has admitted that part of the €1tn-a-day London market for clearing trades denominated in euros could justify tougher oversight from the EU or even move outside the UK.

Swiss Central Bank Delivers Record Rise in Profits – Financial Times (subscription)

The record surge in earnings highlighted the impact of the franc’s weakness against the euro since the European Central Bank started moving towards winding down the exceptional measures it has taken to boost the eurozone economy.

Platform Volumes Decline in October – Profit & Loss

The first three platforms to report FX volumes for October indicate that while turnover failed to maintain the September highs, average daily volume (ADV) remains close to the year’s peak.

Asian Buy Side Faces Non-Cleared Margin Currency Penalty – Risk (subscription)

Global banks charge premium for accepting local securities instead of major currencies.

High-Frequency Traders Shift from Speed Back to Strategy – Financial News

There is a dawning realisation among all asset classes, including foreign exchange, that a focus on speed is no longer enough to stay ahead of the game.

Regulatory News

Sens. Crapo, Brown End Talks on Dodd-Frank Rollback – Wall Street Journal (subscription)

Months of negotiations break down; ‘we will not be able to reach a compromise’.

Morgan Stanley to Traders: Knee-Jerk Fed Chair Move Won’t Last – Bloomberg

However the bond market reacts to President Donald Trump’s nominee to lead the Federal Reserve, Morgan Stanley has some simple advice: do the opposite.

Vietnam Puts the Brakes on Cryptocurrency Use, Including Bitcoin – Pymnts

The use of Bitcoin as a form of payment has been banned in Vietnam, according to reports.

Russia’s Medvedev Says the World Shouldn’t Be Dominated by One Currency – Reuters

Russia is also working on its own national payment system, Medvedev told reporters in Beijing during a visit to China.

Company News

Nomura Prop Traders Are Nearing Exit as London Unit Closes, Sources Say – Bloomberg

Group used Nomura’s capital to bet on stocks, currencies, debt.

Mosaic Looks to Standardize FICC Metrics – Markets Media

Matthew Hodgson, chief executive and founder of Mosaic Smart Data, said its partnership with JP Morgan shows that the bank believes the fintech firm can provide metrics which will become the standard in fixed income, currencies and commodities.

R3 Reveals New Payments Solution – Profit & Loss

R3 and 22 of its member banks have developed a new international payments solution that leverages distributed ledger technology (DLT).

Broadway Announces Fixed Income Expansion – Profit & Loss

Broadway Technology has signed three tier-one banks, including Barclays, to mark its expansion into the global fixed income marketplace.

Metamako and Velocimetrics Collaborate for MiFID II Timestamping; Analytics – Profit & Loss

Specialist FPGA-enabled high-performance networking platform provider Metamako, and Velocimetrics, a provider of business flow tracking and performance analytics, have announced a collaboration to deliver analytics and time stamping “beyond what is required by MiFID II”.

Market Savvy

Kiwi Biggest Mover in Asia Forex Trading – Financial Times (subscription)

The New Zealand dollar was the biggest mover in an otherwise quiet morning session in Asia currency markets.

C$ Weakens as GDP Data Supports Bank of Canada’s Caution – Reuters

The Canadian dollar weakened against its US counterpart after data showing a surprise contraction of the domestic economy supported the Bank of Canada’s caution on further interest rate hikes.