Top Headlines

Dollar Rebounds vs Yen, Bitcoin Surges Above $14,000 – Reuters

The dollar recovered some ground against the yen, as global markets regained some appetite for risk and on optimism that the United States will successfully push through a tax reform programme.

Dollar Seen Going Through the Roof as Repatriation Flows Kick In – Bloomberg

A US tax overhaul could trigger a comeback in the dollar after an eight percent sell-off this year, according to Bank of America.

Sterling Pauses Near Eight-Day Lows as Brexit Talks Eyed – Reuters

Sterling held steady near an eight-day low as investors paused to monitor developments in Britain’s tense negotiations over leaving the European Union.

Sterling to Coast, But Brexit Talks Progress Would Drive Rally – Reuters

Sterling’s outlook is stable over the coming year, but a few currency strategists polled by Reuters expect it to make significant gains if negotiations over Britain’s departure from the European Union take a positive turn.

New Report Offers “Flash Crash” Definition – Profit & Loss

Pragma Securities has released a new report that analyses FX spot market data in order to provide a more accurate definition of exactly what constitutes a “flash crash”.

Brexit ‘Affecting London’s Talent Pool’ – BBC

Standard Chartered is “preparing for the worst” from Brexit, chief executive Bill Winters told the BBC.

Hedge Funds Try a Quant Approach to Tackling Cryptocurrencies – Bloomberg

A daring few hedge funds are attempting to apply rules and models to the wildest market out there – cryptocurrencies.

Bitcoin Frenzy in South Korea Pushes Payment Premiums to 23% – Financial Times (subscription)

A frenzy of demand for bitcoin in South Korea has buyers in the east Asian nation now paying premiums of more than 20 per cent compared with international rates.

Entertainer of the Year – Profit & Loss (subscription)

Nothing has given greater pleasure, more Twitter-fodder and more ‘old-school’ entertainment like Bitcoin.

Taking a Deeper Look – Profit & Loss (video)

LMAX Exchange CEO, David Mercer, explains that some market participants need to take a deeper look at their FX execution in order to improve it.

Stemming the Tide of Rising Data Costs – Euromoney

Innovation and price transparency around market data remain a bone of contention among FX market participants, although data providers insist they are working to reduce costs.

Regulatory News

Wall Street Banks Push Back on Launch of Bitcoin Futures – Financial Times (subscription)

The world’s largest banks are pushing back on the introduction of bitcoin futures, raising concerns with US regulators that the financial system is ill-prepared for the launch of the contracts as the value of the volatile cryptocurrency has soared.

Plan to Stop Banks from Seducing Regulators Dies Under Trump – Bloomberg

A high-profile plan to prevent federal watchdogs from getting too cozy with banks they are supposed to police has been scrapped by President Donald Trump’s newest Wall Street regulator.

Mifid II Impact on Investment Banking ‘Exaggerated’ – Financial Times (subscription)

The much-hyped EU Mifid II investor protections coming into force on January 3 will erode less than three per cent of investment banks’ annual revenue from Europe, the Middle East and Africa, a new study has found.

China’s Financial System Has Three Important ‘Tensions,’ the IMF Says – CNBC

An almost two-year long study of the Chinese financial system by the International Monetary Fund found three major tensions that could derail the world’s second-largest economy.

Company News

Icap European Sef faces Axe as US, EU Reach Equivalence Deal – Risk (subscription)

Dual-registered venue no longer necessary under US-EU substituted compliance regime, say lawyers.

Citigroup Expects ‘High Teens’ Percentage Fall in Fourth-Quarter Markets Revenue – Reuters

Citigroup expects its fourth-quarter markets revenue to be lower by a “high-teens” percentage from a year earlier, Chief Financial Officer John Gerspach said.

CME Fee Rises Vex Struggling High-Speed Trading Industry – Financial Times (subscription)

A rise in transaction fees for futures contracts at CME Group is angering the exchange operator’s most active customers at a time when their business models are being challenged by subdued market volatility.

Market Savvy

Brief Krona Rally Shows Tight Market Focus on Shift in Stance – Financial Times (subscription)

The Swedish krona embarked on a sharp but short-lived rally before giving up all of its gains and falling to a decline for the day, as traders appeared to misinterpret comments from the deputy governor of the country’s central bank.

Fast & Furious Ringgit Needs to Take Pit Stop, State Street Says – Bloomberg

After going from last to first in Asia, the Malaysian ringgit may be headed for a break – before resuming its rally.

Growth, Rate Hikes to Jack Up Main CEE Currencies – Reuters

Central Europe’s robust and stable economic growth is expected to boost the crown, zloty and forint next year, with the former two also getting help from likely monetary tightening, a Reuters poll found.