Top Headlines

Dollar Edges Lower on Tax Overhaul Concerns – Wall Street Journal (subscription)

The dollar slipped as concerns grew over possible delays to a long-awaited Republican tax overhaul.

From Circuit Breaker to Record Maker: Trump’s Year in Charts – Bloomberg

So called “Trump trades” took off, then crash-landed.

Sterling Edges Higher After Upbeat UK Data – Reuters

Sterling edged up to the day’s highs after British industrial and manufacturing output printed above forecasts, though stocks and bonds remained in a narrow range.

Pound Could Lose $1.30 Level But Not for Long – Financial Times (subscription)

Banks expect Brexit deal to be done, offering longer-term support.

The Euro is Not a Punishment System – Financial Times (subscription)

The euro was created in part because some people in countries such as Italy and Spain didn’t trust their governments to control inflation.

SNB’s Jordan says Swiss franc is ‘highly valued’ – Reuters

The Swiss National Bank remains committed to its ultra-loose monetary policy and sees the Swiss franc as currently “highly valued”, Chairman Thomas Jordan said.

Norway’s Wealth Fund Seeks Better Currency Market Deal for Clients  – Reuters

Norway’s $1 trillion sovereign wealth fund, the world’s largest, called for more transparency in global foreign exchange markets to cut the cost of transactions and make them more efficient.

Judge Approves A$100 Million Aussie Rate-Rigging Settlements – Bloomberg

An Australian judge approved a A$100 million ($77 million) settlement between the securities regulator and two of the country’s largest lenders accused of seeking to rig the benchmark bank bill swap rate.

Cryptocurrencies Can Never Drive Out Money: ECB’s Constancio – Reuters

Cryptocurrencies will never prevail as a general money substitute and central banks are unlikely to create digital currencies of their own without limits, European Central Bank Vice President Vitor Constancio said.

Fed’s Powell on Libor Reform, Repo and Clearing – Risk (subscription)

Market doesn’t need to “clear all US dollars in US and all euros in eurozone” says next Fed chair.

Davis to the City: Fate of Banks Is UK’s Top Brexit Priority – Bloomberg

The UK is determined to protect London’s financial district by striking a Brexit deal that works for global banks, David Davis said, amid signs firms are stepping up plans to move operations to other countries.

Regulatory News

China to Give Foreigners Greater Access to Its Financial Sector – Wall Street Journal (subscription)

China took a major step in opening up its financial sector, announcing a relaxation of restrictions on foreign ownership in the securities and banking sectors just hours after US President Donald Trump concluded his visit to Beijing.

CFTC’s Quintenz Weighs Swap Dealer Threshold Impact – Risk (subscription)

Market participants may be depressing swaps activity to avoid breaching the $8 billion notional activity-based threshold so they don’t have to register as a swap dealer, says Brian Quintenz, new commissioner at the US Commodity Futures Trading Commission.

Senate Clears Way for Ex-Mnuchin Deputy to Lead Bank Regulator – Bloomberg

Senate Republicans have initiated the process of confirming Joseph Otting, a former deputy to Treasury Secretary Steven Mnuchin at OneWest Bank, to lead one of Wall Street’s top regulators.

Nordic Regulators Say Full MiFID Compliance from Get-Go Unlikely – Bloomberg

Finland’s Financial Supervisory Authority says it’s well aware that banks probably won’t be able to comply with all of MiFID II when Europe’s sweeping overhaul of market rules takes effect on Jan. 3.

SEC Chief Fires Warning Shot Against Coin Offerings – Wall Street Journal (subscription)

SEC Chairman Jay Clayton said so-called initial coin offerings in many cases looked like securities, raising the prospect the agency will take a more aggressive stance to this red-hot fundraising method.

Company News

Thomson Reuters’ FX Volumes Down in October – Profit & Loss

Thomson Reuters’ FX volumes have followed the path established by other platforms who reported earlier this month by reporting a month-on-month decline in spot FX average daily volume (ADV).

Hedge Funds Continue Winning Streak in October – Profit & Loss

Hedge Funds extended their winning streak to 12 months with a 0.96% gain in October, according to the Barclay Hedge Fund Index compiled by BarclayHedge.

NEX Business to Apply for Trade Repository Status – Profit & Loss

NEX Regulatory Reporting has announced its intention to apply to become a trade repository for the Securities Financing Transactions Regulation (SFTR) and launch a dedicated reporting solution, pending the issuance of the final technical standards from ESMA.

Crown Agents Bank Unveils EMpowerFX – Profit & Loss

London-based boutique provider Crown Agents Bank, which is regulated in the UK, has launched a new online foreign exchange trading platform – EMpowerFX – allowing clients to gain access to “competitive prices” on both emerging market and major traded currencies.

Spark Systems Appoints Two Advisors – Profit & Loss

Spark Systems, the Singapore-based, MAS-backed Fintech FX startup, has welcomed industry veterans Paul Scott and Alain Kamagi to its advisory board, where they will serve as consultants in the development of the company’s foreign exchange trading platform.

TP Icap Faces Network Outage at Voice Broking Unit – Financial Times (subscription)

TP Icap, the world’s largest interdealer broker, has suffered a big network outage in one of its voice broking businesses.

Market Savvy

Mexican Peso Up on Wary Central Bank, Brazil Stocks Fall – Reuters

Mexico’s peso gained after the central bank signaled it would not cut interest rates anytime soon after a recent currency slump threatens to fan inflation while Brazilian stocks fell after a batch of weak corporate reports.

Higher Oil Prices Pull Up Ringgit, Most Currencies Steady – Reuters

The Malaysian ringgit advanced and was set to post its biggest weekly gain in more than two months, bolstered by firmer oil prices and the prospect of higher interest rates in the Southeast Asian economy.

Shekel Emerges as World’s Second-Strongest Currency – Israel National News

According to Deutsche Bank Strategic Foreign Currency Analyst Dr. Gautum Kalani, the shekel has appreciated 6.1% against the currencies of Israel’s main trading partners: the British pound, the Japanese yen, the US dollar, and the euro.