Top Headlines

Dollar Ends Winning Streak Before Elections – Reuters

The dollar dipped on Monday after three consecutive weeks of gains as investors took profits before US midterm elections this week that may fuel a new bout of volatility for global markets.

A Well-Trodden Path? – Profit & Loss

Profit & Loss examines how banks in different emerging markets face the same challenges when trying to build out their e-FX businesses, and questions the extent to which technology developments in these markets will follow a familiar pattern.

Is the Value of Anonymous Venues Diminishing? (opinion) – Profit & Loss

Not only do we not need so many anonymous venues, their value in terms of liquidity levels has also been diminished. This is not to say the model will continue to shrink and disappear; more that I cannot see a recovery in activity levels unless something very dramatic happens – and it is hard to see what that would be given how in stressed markets volume seems to go to the primary venues.

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

This week’s podcast focuses on what seems to be a growing debate about the value and future of the FX Global Code following the acquittal of the three members of the Cartel.

FXSpotStream the Stand Out as Early FX Volumes Reported – Profit & Loss

The first batch of FX platforms to report data indicate October saw a modest uptick in activity from September, although CME Group saw average daily volume fall from an outstanding previous month.The stand-out result comes from FXSpotStream, which has reported another peak in activity at $35.9 billion per day. 

Regulatory News

Alarm Raised By EU Loyalist Over ‘Cliff Edge’ Facing Banks – Bloomberg

A key concern is that the EU still doesn’t have a tenable plan to ensure banks maintain access to vital financial infrastructure in the form of London-based clearing services, according to Prime Minister Lars Lokke Rasmussen.

FIA Calls for Legal Certainty for Clearing Services Under Volcker Rule – Global Investor (subscription) 

The trade body calls for a Commission Rule change as opposed to an extension of CFTC no-action relief.

Search for Term Libor Replacement Hits Twin Barriers – (subscription)

The swaps market has made progress in its bid to replace the Libor family of rates benchmarks with something more robust – new risk-free rates that are derived from liquid, reliable markets. But one of its next steps is to come up with term versions of those overnight rates, and sceptics believe the two obvious solutions both suffer from Libor-like flaws.

SEC Collects Nearly $4 Billion in Fines, Disgorgement in Fiscal 2018 – Reuters

The Securities and Exchange Commission assessed $3.945 billion in disgorgement and penalties across 821 enforcement actions in fiscal 2018, the agency’s enforcement division said in its annual report on Friday.

Crypto News

Deutsche Boerse Eyes Digital Asset Infrastructure – Global Investor (subscription)

Jens Hachmeister said providing market infrastructure for crypto-assets could be an “intriguing future field of activity” for the group,

DeVere Group Launches Crypto Asset Fund – Profit & Loss

DeVere Group has founded the DeVere Digital Asset Funds, something it says is “a suite” of digital currency solutions for experienced investors, in association with Dalma Capital Management, a hedge fund manager in the Dubai International Financial Centre. 

CSDs Consider Entry into Crypto Market – Sell-Side Technology (subscription)

A group of central securities depositories, specialist organizations that typically are responsible for holding securities such as shares so they can be easily transferred, are exploring how their roles are translatable to the crypto-asset infrastructure, in a sign that traditional finance’s biggest players are considering an entry to the market.

Bitcoin’s ‘First Felon’ Faces More Legal Trouble – The New York Times

Charlie Shrem went to prison in 2015 after he pleaded guilty to helping people buy drugs online. Now he’s being sued by the Winklevoss twins.

SEC Expands Cryptocurrency Crackdown with Nationwide Sweep – Politico

The Securities and Exchange Commission is probing investment advisers for potential misconduct involving cryptocurrencies, signaling a new direction in its oversight of the emerging market, according to three people familiar with the matter.

Hong Kong Regulator Mulls Sandbox Approach to Crypto-Exchanges – Finextra

Hong Kong’s Securities and Futures Commission wants to use a sandbox environment for cryptocurrency trading venues as part of a wider change in the regulatory approach to virtual assets.

Company News

City Maverick Michael Spencer: Trading? ‘It’s a Contact Sport’ – Financial Times (subscription)

The veteran financier on the Big Bang, banking’s boomtime and the scandals that scuppered his peerage.

NEX Allows Repo Clearing in Europe Ahead of Brexit – Reuters

London-based NEX Markets said on Thursday users of its BrokerTec Europe platform would be able to clear repo trades on Deutsche Boerse as it prepares for Britain’s exit from the European Union.

FiREapps Expands Software Beyond FX Risk – Profit & Loss

FiREapps has expanded its software offering from currency risk management to enterprise currency management.

New Systematic Currency Fund Launches – Profit & Loss

Roger Boehler and Kevin Nay Yaung have launched a new currency fund called Limmat Currency Partners. LCP is headquartered in Westport, Connecticut, with Boehler serving as the firm’s CEO and Yaung operating as a general partner.

Merrill Lynch Cuts Broker Pay – The Wall Street Journal (subscription)

Compensation changes aim to trim costs and spur cross-selling, but prompt grumbling.

Market Savvy

Sterling Rallies on Report Brexit Agreement Will Include UK Customs Deal – Reuters

Sterling rallied on Monday after a Sunday Times report said Britain was nearing a deal for leaving the European Union and that an all-UK customs arrangement would be part of it.

Emerging Markets Become More Able to Withstand a Crisis – Financial Times (subscription)

Developing economies appear more robust, but China slowdown is biggest threat.

EM ASIA FX: US Rate Hike Fears, Slow China Services Data Sap Asian Currencies – Reuters

Most Asian currencies weakened on Monday after robust labour data signalled faster interest rate hikes in the US, while a slowdown in China’s service sector further sapped sentiment.