Top Headlines

EU and US Agree to Accept Each Other’s Derivatives Rules – Financial Times (subscription)

The US and EU have taken a big step towards harmonising the global rules for derivatives trading, by reaching a long-sought agreement to accept the validity of each other’s regulations in the multibillion dollar market.

Euro Falters After Biggest Weekly Rise in a Month as Catalonia Deadline Looms – Reuters

The euro slipped after posting its biggest weekly rise in a month as traders took profits, though markets were wary of chasing the currency lower before an European Central Bank policy meeting next week.

Dollar Edges Up as Treasuries Pare Gains – Financial Times (subscription)

The dollar was edging up in Asia Pacific trading after having mostly recovered from a sudden dip on Friday precipitated by data showing a rise in September of just 0.1 per cent in US core consumer prices.

Sterling Strengthens as Investors Bet on Data Boost – Reuters

The pound edged up as investors bet that economic data this week would put the Bank of England on track for a rate rise by the end of the year and – at least for the time being – overshadow Brexit.

Leaked EU Doc Could Shield Legacy Swaps from Clearing Grab – Risk (subscription)

Council paper being debated today sets terms for swaps clearing landgrab.

Major Clearinghouses Can Avoid Liquidity Crunch in Crisis, CFTC Says – Wall Street Journal (subscription)

Major clearinghouses for derivatives can withstand substantial stress to the financial system and avoid a liquidity crunch in a crisis, the Commodity Futures Trading Commission said in a report that marks the second time it has “stress-tested” the entities and found they passed.

Goldman Sachs and JPMorgan Say They’re Assuming a ‘Hard Brexit’ – Bloomberg

Goldman Sachs Group and JPMorgan Chase are bracing for a “hard Brexit” as they seek to protect their access to the European Union once Britain leaves the bloc in 2019, according to top executives.

Time to Take Talk Seriously – Profit & Loss (subscription)

In the FX industry, we are simply not taking enough care over our communications.

Dimon and Fink Unite on Need to ‘Crush’ Bitcoin – Financial Times (subscription)

Wall Street power duo hit out at virtual currency as being only valuable to criminals.

Last Chance to Complete Our Data Survey – Profit & Loss

This week represents your last chance to tell us what you think about a variety of data-related topics from TCA to data mining, as our quarterly survey closes on Thursday.

Regulatory News 

EU Power Grab Risks Disenfranchising National Regulators – Financial Times (subscription)

Proposed reforms to Paris-based Esma will upend regulatory landscape.

Fund Houses and National Regulators Battle to be Mifid Ready – Financial Times (subscription)

Widespread uncertainty over complex new regulations linger ahead of January 3 deadline.

Fed’s Fischer Says Trump Should Reappoint Yellen – Wall Street Journal (subscription)

Federal Reserve vice chairman calls Yellen ‘safe pair of hands’.

Automated-Trading Supervision Should Target ‘True Risks,’ CFTC Official Says – Wall Street Journal (subscription)

The Commodity Futures Trading Commission needs to take a fundamentally different approach to regulating automated trading than the course pursued under the Obama administration, Republican Commissioner Brian Quintenz said in an interview.

Pentagon Turns to High-Speed Traders to Fortify Markets Against Cyberattack – Wall Street Journal (subscription)

Dozens of high-speed traders and others from Wall Street are helping the Pentagon study how hackers could unleash chaos in the US financial system.

Regulators Warn Retail Traders Against Cryptocurrencies – Financial Times (subscription)

Online derivatives trading companies are taking advantage of the growth of cryptocurrency markets by allowing retail customers to bet on wildly fluctuating prices, prompting warnings from regulators.

Company News

Knott to Step Down at NEX Optimisation – Profit & Loss

Just weeks after announcing it was allocated additional funding to its post-trade business, NEX Optimisation, NEX Group (Nex) has announced that its CEO, Jenny Knott, has decided to step down from the role.

Swift Publishes Early Findings from DLT PoC – Profit & Loss

Swift has published an interim report on the proof of concept (PoC) for real-time Nostro reconciliation using a Swift-developed distributed ledger technology (DLT) sandbox with 33 global transaction banks, as part of its gpi (global payments innovation) service.

SGX Expects to Be Among First Wave of Mifid II Equivalence – Risk (subscription)

EC approval would mark a major acceleration in process of allowing trading on non-EU venues.

Market Savvy 

Most Asian Currencies Rise in Catch-Up Trade; Singapore Dollar Dips – Reuters

Most Asian currencies ticked up against the dollar, which softened after disappointing US inflation data on Friday undercut the greenback.

Canada’s Besting Mexico in Nafta Talks (If You Trade Currencies) – Bloomberg

Currency traders see the Mexican peso as a clear loser as negotiations over the North American Free Trade Agreement drag on, with the US proposing a clause that could spell the end of the accord.

Bitcoin Surges Above $5,200 on Hopes of Renewed China Trade – Wall Street Journal (subscription)

Bitcoin set a fresh record above $5,200 as investors bet on China easing trading restrictions and reacted to a prominent hedge fund manager predicting the price of the virtual currency could rise to $10,000 within a year.