Top Headlines 

EU Derivatives Market Valued at €660 Trillion – The Trade

The derivatives market in the European Union has been valued at €660 trillion, with interest rate derivatives dominating the market, followed by currency derivatives. 

CLS Volumes Up In September – Profit & Loss

CLS has reinforced the impression that FX markets were busier in September by reporting a 7.7% increase in volumes handled from August. Earlier this month a series of FX trading platform providers also mostly reported a month-on-month increase.

Sterling Gains After EU’s Barnier Says Brexit Deal 90 Percent Done – Reuters

The pound rose on Friday after European Union negotiator Michel Barnier said a Brexit deal with the United Kingdom was 90 percent done, although political uncertainty in Britain kept the gains in check.

FX ‘Cartel’ Traders Teamed Up After Trying to ‘End’ Each Other – Bloomberg

A group of British currency traders decided it was better to talk than fight, a Manhattan federal jury was told. The traders saw each other as fierce rivals before they became fast friends and decided to work together in a chatroom known as “The Cartel,” one of them told the jury.

Nasdaq Default: Rivals Question Direct Clearing – (subscription)

“Was this individual margined correctly?” asks Ice’s Sprecher. 

Regulatory News 

Brussels Hits Back at US Exchanges Threat – Financial Times (subscription)

Brussels has hit back at US threats to shut off European banks from parts of the financial system, insisting on the EU’s right to press ahead with regulatory plans that are fiercely opposed by Washington.

Germans Enlist Help to Move Trillions in Swaps From UK – Bloomberg

After the war of words on euro clearing and Brexit, the real action has begun. Deutsche Boerse is building a service that can move trillions of dollars in derivatives trades from LCH in London to its own clearinghouse, Eurex Clearing, in Frankfurt. It’s working with four companies to provide the technology for the move.

Banks Urge US Regulators to Reconsider ‘Volcker Rule’ Tweaks – Reuters

Banks on Thursday pushed back on how regulators are attempting to simplify rules prohibiting banks from trading on their own account, a development that is likely to delay efforts to wrap up the overhaul in the coming months.

Bank Push for Benchmark-Rate Delay Makes Headway in Brussels – Bloomberg

Banks are finding allies in Brussels with their call for extra time to adopt a new euro benchmark lending rate as Europe tries to put a spate of rigging scandals behind it.

Mifid II: Systematic Internalisers Face Uneven Playing Field Outside EU – Practice Insight (subscription)

SIs say that non-EU counterparts don’t want to trade with them anymore over information leakage fears as more extraterritorial results emerge.

Crypto News

TradAir Targets Crypto Growth Amid Management Changes – Profit & Loss

TradAir is revamping its business to offer technology solutions for the crypto market, a move that coincides with senior management changes at the firm.

CME: Average Daily Volume for Bitcoin Futures Grew 41% in Q3 – CoinDesk

Average daily volumes for bitcoin futures trading saw a significant jump in the third quarter compared to the last period, according to CME Group.

SIX to Bridge Traditional and Crypto Exchange – Global Investor (subscription)

SIX plans to tokenise some of the securities it holds under custody and bring them over to its new crypto exchange.

NYC Fintech Plans Cryptocurrency Lending Desk – Global Investor (subscription)

A cryptocurrency fund admin firm plans to launch a prime brokerage arm complete with bitcoin borrowing and lending capabilities.

The Rise and Fall of Ethereum – Financial Times (subscription)

For much of last year, many cryptocurrency enthusiasts believed that Ether would steal the crown from rival bitcoin to become the world’s most valuable cryptocurrency by market capitalisation, a moment they dubbed “the flippening”. But this year, both currencies flopped.

Goldman Wades Deeper in Crypto, Betting on BitGo With Billionaire Mike Novogratz – Bloomberg

Goldman Sachs and a venture founded by one of its former partners, billionaire Mike Novogratz, are investing in cryptocurrency custodian BitGo Holdings, as the bank’s deep-pocketed clients keep asking about secure ways to hold those assets. 

Company News 

CME Runs First NDF Optimisation Cycle – Profit & Loss

CME Group says it has completed its first initial margin optimisation cycle in collaboration with Quantile Technologies, which generated over $1.2 billion in NDF clearing across multiple currency pairs from banks including Citi and Standard Chartered.

Swift Calls for Standard API Methodology – Central Banking (subscription)

Payment services provider Swift says an open banking ecosystem will only be successful if financial standard-setters formulate a “business standardisation methodology” for the underlying interface technology.

NatWest Markets’ FXmicropay Takes to SAP Cloud – FX Week (subscription)

NatWest Markets is making FXmicropay available to SAP Commerce Cloud customers in a bid to extend its product to a larger set of firms that are looking to price their products in local currencies, but lack the in-house capability to manage the FX exposure. 

London Stock Exchange ups stake in clearing house LCH to 80% – Financial News (subscription)

The London Stock Exchange has increased its stake in the clearing house LCH to 80% — a major show of confidence in a business line that is under threat from Brexit. 

Market Savvy 

Euro Falls Towards Two-Month Low after EU Confronts Italy over Budget – Reuters

The euro fell towards a two-month low on Friday after the European Union criticised Italy’s spending plans, raising fresh concern over conflict within the common currency zone.

Treasury’s Currency Report Seen as China’s Final Warning – Bloomberg

While the US Treasury stopped short of labeling China a currency manipulator in its latest semiannual report, the department’s sharpened language didn’t escape the foreign exchange market’s notice.