Draghi’s Weeks of Rhetoric Culminate in ECB Stumble on Stimulus

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Top Headlines

Draghi’s Weeks of Rhetoric Culminate in ECB Stumble on Stimulus – Bloomberg The European Central Bank’s 360 billion-euro ($393 billion) stimulus boost and rate cut on Thursday, which was in line with the president’s wishes, sent the euro soaring and stocks and bonds tumbling as disappointed investors matched reality to their expectations.

It’s Not Going to Get Any Better for Greece in 2016 – Bloomberg As it enters 2016, the country remains as vulnerable to economic catastrophe as it is defenseless against the torrent of people fleeing Syria and other war zones.

FX Volumes Slide Further in November – Profit & Loss The recent slide in FX activity following the spike in August continued in November with most multi-dealer venues reporting month-on-month and year-on-year declines.

Small Fish, Big Prize: The Market Makers Out to Eat the Banks’ Lunch – Euromoney New specialist liquidity providers are nibbling away at the share of the big universal banks in more and more parts of the FICC markets.

The Rise of the Blockchains: Alternative Models Emerge – Banking Technology If the global payments industry were to be designed from scratch, nobody would design the system we have today.

 

 

Regulatory News

CME Defeats Suit Alleging It Favored High-Frequency Traders – Bloomberg CME Group Inc., owner of the world’s largest futures market, defeated a lawsuit by some users who alleged the company sold access to order information to high-frequency traders ahead of other market participants.

Mifid II’s Delegated Acts: What to Watch for in 2016 – Financial News The EU’s revised Markets in Financial Instruments Directive, known as Mifid II, which will transform almost every aspect of the region’s trading landscape, is already likely to come into force a year later than expected in January 2018.

 

 

Company News

Goldman Tries a New Commodities Play – Wall Street Journal (Subscription) Nearly 5,000 miles from New York, in postcard-perfect Hawaii, a new model for Wall Street’s commodity business is taking shape.

Credit Suisse to Hire in FIG and Industrials –  Financial News Credit Suisse’s European investment banking business will make new hires in its financial institution group and industrials teams, with the UK and Germany the priority markets, according to the co-heads of IBCM – investment banking and capital markets – division for Europe, Middle East and Africa.

Brevan Howard Plots Comeback as Fed Seen Spurring Volatility – Bloomberg Brevan Howard Asset Management, the investment firm hurt over the past two years by slumping returns and shrinking assets, says a comeback is at hand.

Brazilian Bank BTG Gets $1.6 Billion Credit Line – Wall Street Journal (subscription) The Brazilian investment bank’s co-founder was accused of obstructing a police investigation.

JPMorgan Defeats London Whale Shareholder Lawsuit in US – Reuters A federal appeals court said JPMorgan Chase & Co Chief Executive Jamie Dimon and other bank officials need not face a shareholder lawsuit claiming they did a bad job investigating the 2012 “London Whale” trading scandal that caused $6.2 billion of losses

 

 

Market Savvy  

Speed Traders Wanted: Russia Brokerage Courts Fastest US Firms – Bloomberg Algorithmic and high-frequency traders in the US may soon get even greater access to Russian markets.

OPEC Meeting Begins Amid Debate Over Production Cuts – Wall Street Journal (subscription) Ministers gather following warnings over sustained low oil prices.

Nikkei Suffers Biggest Daily Drop in More Than Two Months – Reuters Japanese stocks fell on Friday after the European Central Bank dashed expectations for greater stimulus, triggering a broader sell-off after the dollar weakened against the yen.

 

 

Press Releases

SEC Announces Charges for Spoofing and Order Mismarking – SEC The Securities and Exchange Commission today announced fraud charges against three Chicago-based traders accused of circumventing market structure rules in a pair of options trading schemes.

 

 

Industry Events