Top Headlines

Dollar Rebounds from Four-Week Lows as Risk Appetite Recovers – Reuters

The dollar rebounded from four-week lows against the yen, as global markets regained some of their risk appetite after a sharp sell-off in stocks and the greenback over the past week.

Sterling Unmoved by Retail Sales Data; Brexit Eyed – Reuters

Sterling was only a touch higher as investors largely ignored marginally better-than-expected retail sales data, focusing instead on uncertainty around Brexit negotiations.

Trade Sterling Like Emerging Market Currency, Say Investors – Reuters

The pound should be traded like the currency of an emerging-market country, money managers at the 2018 Reuters Global Investment Summit said, because of uncertainty surrounding Brexit.

ECB’s Supervisory Arm Criticises Banks’ Brexit Relocation Plans – Financial Times (subscription)

The European Central Bank’s supervisory arm has criticised banks’ Brexit relocation plans for leaning too far toward the ‘empty shells’ regulators have cautioned against.

JPMorgan Calls for UK-EU Financial Services Free Trade Deal Post-Brexit – Financial Times (subscription)

JPMorgan has called for a free-trade agreement between the UK and the European Union to cover financial services as a way to ensure mutual access after Brexit.

Beads of Optimism and Decency – Profit & Loss (subscription)

The New York Department of Financial Services document highlights why we need to keep working to ensure the Global Code reaches every market participant.

The Human Problem – Profit & Loss (subscription)

The wealth of data and predominance of electronic trading mean TCA in spot FX should be a relatively straightforward process. But what happens when a market is mainly voice traded and data is sporadic?

Bitcoin’s Rivals Multiply Amid Battle for Crypto Dominance – Bloomberg

Proposed new coins include super bitcoin, bitcoin silver.

Corporate Execs Are Obsessed with Blockchain Because They Can’t Afford to Ignore It Anymore – Quartz

The blockchain hype is real, and it’s become the talk of C-suites around the world.

DTCC’s Bodson on Blockchain, SDRs and Repo Clearing – Risk (subscription)

Swap data reporting will move to a distributed ledger platform in early 2018.

Regulatory News

Asian Regulators Need to Step Up to Swaps Challenge – Risk (subscription)

Asian derivatives markets could look very different in 2018, as the attraction of Hong Kong and Singapore as hubs for booking derivatives strengthens amid global regulatory change and Britain’s looming exit from the European Union.

Japan Considers Tightening Leverage Rule for Mrs Watanabe – Reuters

Japan’s Financial Services Agency is considering reducing the maximum leverage allowed for margin FX trading to 10 times from the current 25 times, sources familiar with the matter said.

Publishing SI’s Identities Is a ‘Major Concern’: Industry Bodies – FOW (subscription)

Isda, Afme, and Gfxd have warned European regulator Esma on the Mifid II SI regime.

FCA Warns on Binary Options; Cryptocurrency CFDs – Profit & Loss

The UK’s Financial Conduct Authority (FCA) has issued two warnings to retail investors over binary options and cryptocurrency contracts for difference (CFDs).

Singapore Keen on Initial Coin Offerings – Financial Times (subscription)

Singapore’s central bank is “very keen’’ to facilitate fundraising through “good” initial coin offerings rather than following other Asian regulators and ban such activity.

Company News

NEX Commits to FX Global Code – Profit & Loss

NEX Group (Nex) says it has signed a Statement of Commitment to adopt the principles of the FX Global Code across its EBS FX trading platforms and NEX Optimisation services.

BNP Signs Treasuries Deal with GTS – Profit & Loss

BNP Paribas and non-bank market making firm GTS, have announced a strategic collaboration, which they say, marks “a new era for banks and electronic market makers”.

LMAX Exchange Partners with Academia – Profit & Loss

LMAX Exchange has unveiled a partnership with an academic at the University of Oxford to develop a methodology for consistent evaluation of trading costs across liquidity pools that can be used by the FX industry.

The Bitcoin Exchange That CME Plans to Use for Futures Is Down – Bloomberg

This is exactly what the bitcoin futures naysayers have been warning about: one of the exchanges which CME Group would use to price the contracts is having serious issues.

Intercontinental Exchange Shakes Up Senior Ranks – Financial News

The global exchanges and clearing houses operator has appointed a new president and vice chairman, among other roles.

Market Savvy

Solid US Data Lifts Emerging Stocks, Currencies – Reuters

Emerging stocks snapped a five-day losing streak as investors found solace from solid US data in the wake of the recent global equity sell off while currencies advanced despite a slightly stronger dollar.

Bitcoin Jumps in Zimbabwe as Political and Financial Crisis Deepens – Business Live

Bitcoin climbed as much as 10% on Zimbabwe’s Golix exchange after the country’s armed forces seized power.

CEE: FX, Stocks Rebound as Asia Stocks Rise and Euro Retreats – Reuters

Central European currencies and equities mostly firmed on relief that the past week’s global stocks sell-off had not continued in Asia overnight, indicating less risk aversion.