Top Headlines

Dollar Hits Eight-Week High vs. Yen as Fed Meets – Reuters

The dollar hit an eight-week high against the yen as US central bank policymakers meet to discuss further monetary tightening, with renewed calm over North Korea easing demand for perceived safe havens like the Japanese currency.

Sterling Pressured After Carney’s Comments – Reuters

Sterling slipped against the dollar, kept under pressure after a nearly one percent slide on comments from Bank of England governor Mark Carney, who said interest rates rises in coming months would be limited and gradual.

Pound’s Post-Brexit Vote High Prompts Overhaul of Forecasts – Financial Times (subscription)

Politics poses potential threat to valuations based on more hawkish BoE outlook.

China Fixes Yuan Midpoint at Softest Level in Two Weeks – Reuters

China’s central bank lowered its official yuan midpoint to 6.5530 per dollar, the weakest level since September 4, reflecting strength in the greenback overnight and weakness in spot yuan a day earlier.

China Must Learn to Let Go of Its Currency – Financial Times (subscription)

The renminbi will not become truly international without looser controls.

Thailand’s Central Bank Has a Major Dilemma: Its Currency – Bloomberg

A public rift between Thailand’s central bank and government on interest rates shows just how much of a dilemma the baht has become for the economy.

Reuters Survey: 10,000 UK Finance Jobs Affected in Brexit’s First Wave – Reuters

Around 10,000 finance jobs will be shifted out of Britain or created overseas in the next few years if the UK is denied access to Europe’s single market, according to a Reuters survey of firms employing the bulk of workers in international finance.

The US Is No Longer the World’s Largest Bitcoin Market – Business Insider

Japan has risen above the US in the worldwide rankings for the largest bitcoin exchange market.

Regulatory News

US Officials Promise Revamped Derivatives Rules – Wall Street Journal (subscription)

Postcrisis derivatives rules should be revised to reflect how markets are functioning nearly a decade after the financial meltdown, senior Trump administration and regulatory officials told an industry gathering.

Treasury Readying Capital Markets Fixes – American Banker

The Trump administration is prepping recommendations to address shortcomings in the capital markets in a report to be released next month, a top Treasury Department official said.

EU Trading Obligation Threatens Packaged Trades – Risk (subscription)

European Union rules requiring certain derivatives to trade on multilateral platforms could result in market participants being unable to execute packages, thereby increasing the costs of hedging. 

Role Reversal: US Leads Race to Bottom in Global Bank Rules – American Banker

The Trump administration’s push to deregulate the banking industry is having a ripple effect internationally as foreign banks are pressing their home jurisdictions to stall implementation of cross-border standards.

Commissioner Quintenz to Sponsor CFTC Technology Advisory Committee – Finextra

The US Commodity Futures Trading Commission (CFTC) announced that Commissioner Brian Quintenz will sponsor the CFTC’s Technology Advisory Committee (TAC).

China’s Interference on Bitcoin Tests Currency’s Foundation – Wall Street Journal (subscription)

Latest plans represents some of the most draconian measures any government has taken to control bitcoin.

Too Little, Too Late? China Can’t Seem to Get a Grip on Fintech Regulation – Wall Street Journal (subscription)

Beijing tightens oversight of investing platforms after a surge of money flows sparks concern over financial stability.

Company News

CLS to Launch Same-Day Settlement – Profit & Loss

CLS Group plans to launch a same-day settlement service in the second half of 2018, subject to regulatory approvals. 

Top Dealers Post $1.4 Trillion of Collateral for Derivatives Trades – The Trade

Margin analysis by ISDA reflects changes to collateral practices over recent years.

Baggioli Leaves ADS – Profit & Loss

Marco Baggioli has resigned from his position as COO at ADS Securities, according to market sources.

People Thought They Caught JPMorgan Buying Bitcoin After Jamie Dimon Called It a ‘Fraud’ – But That’s Not What Happened – Business Insider

Over the weekend, a tweet, which suggested JPMorgan was buying up a product tied to the value of bitcoin, sent shockwaves through the cryptocurrency community.

Market Savvy

Swiss Franc Falls to Lowest Versus Euro Since January 2015 – Reuters

The Swiss franc fell to its lowest level against the euro in more than two years as relative calm over North Korea eased demand for perceived safe-haven currencies.

C$ Weaker After Bank of Canada Talks of Its Strength – Reuters

The Canadian dollar weakened sharply against the US currency as a Bank of Canada policymaker said the currency’s strength will be a factor in future rate decisions.