Top Headlines
EU Pledges Access to UK Clearing Houses in No-Deal Brexit – Financial Times (subscription)
Brussels has responded to financial industry calls for continued access to London’s capital markets by providing reassurance that EU groups will temporarily be able to use crucial derivatives clearing services in the UK even after a no-deal Brexit.
- European Banks Scrutinise CCP Exposures Ahead of Brexit – Global Investor (subscription)
- EU Shows No Sign of Heeding US Threat Over Derivatives Clearing – Reuters
- EC Officials Play Down CFTC Clearing Concerns in Leaked Doc – Global Capital (subscription)
NDFs – The New Model Market? – Profit & Loss
Volumes in NDF markets have increased dramatically in recent years, but what is behind this accelerated activity and will it continue? More importantly, what role are the lessons learned from the G10 markets playing?
Rumours of Revolution Were Premature: The FX Industry in the Blockchain Era – Finance Magnates
Blockchain has an array of different uses, whether it be supply chain tracking or identity verification, but, for our readers, FX is almost certain to be the area most pertinent to their day-to-day work.
The 100 Most Influential Women in Finance 2018 – Financial News (subscription)
Presenting the female executives driving change across Europe’s financial services industry.
Regulatory News
Netherlands to be “Centre for European Financial Trade”: AFM – Global Investor (subscription)
The Dutch regulator says the Netherlands will become a centre for European financial trade after Brexit.
The former French central bank governor’s pitch for Paris as a post-Brexit destination is far from a hard sell.
Keeping At It, By Paul Volcker – Financial Times (subscription)
The last testament of ex-Fed chair appeals for restored trust in government.
CFTC Commissioner Urges Regulators to Approach Fintech with an ‘Open Mind’ – Law.com
Rostin Behnam, who was appointed to one of five CFTC commissioner roles in 2017, spoke to attendees at the 2018 ISDA Annual Japan Conference in Tokyo about the challenges he’s seen regulating crypto assets, bitcoin and other technologies during his first year in office.
Crypto News
UK to Study Possible Ban on Sale of Cryptocurrency Derivatives – Financial Times (subscription)
The UK’s financial watchdog is weighing a potential ban on the sale of derivatives based on cryptocurrencies such as bitcoin, in what would be its first major intervention in the nascent market.
Crypto Market Still Too “Immature” for SEC Regulation: Expert – Global Investor (subscription)
The crypto sector has not yet shown any evidence of permanence, an expert said.
Stable Coin Backed by Circle, Coinbase Draws Most Early Demand – Bloomberg
The cryptocurrency supported by a consortium that includes Circle Internet Financial and Coinbase appears to be the early favorite among the recent slate of high-profile digital coins marketed as being coupled to the US dollar.
Fidelity Cryptocurrency Move Unlikely to Start Flood – Pensions & Investments (subscription)
Fidelity Investment’s move into custody for cryptocurrencies has opened the door ever so slightly for institutional investment in the nascent asset class, but there are still issues of trust that will keep pension funds and other asset owners from crossing the threshold, industry analysts said.
South Korean Group Buys Cryptocurrency Exchange Bitstamp – Financial Times (subscription)
Bitstamp, the EU’s largest cryptocurrency exchange, has been bought by the South Korean holding company that owns rival Korbit, in the latest consolidation among big players in digital currency trading infrastructure.
Company News
XTX Markets to Set Up Paris Hub – Financial Times (subscription)
XTX Markets, one of Europe’s largest market makers, is to set up a hub in Paris to prepare for the UK’s departure from the European Union. Zar Amrolia, co-chief executive of XTX Markets, said French regulators had been “very receptive” to having an electronic market maker established in Paris.
- XTX Prepares for Life Post-Brexit – Profit & Loss
- Australia’s Banks Begin Relocating Functions from London – Financial Times (subscription)
LCH to Launch Spider 2 on November 19 – Global Investor (subscription)
CurveGlobal clients to see “huge efficiencies” as Sonia, Libor, Bund futures margin with respective swaps.
JP Morgan Seeking Tech Talent to Bolster Credit Trading – The Trade
JP Morgan is looking to grow its credit trading technology team globally by 15%, with new teams being established in Chicago and Herzliya in Israel.
Thai Corporate Adds Trading, Settlement Technology – Profit & Loss
Thai energy company PTT Exploration and Production Public Company Limited (PTTEP), has implemented Refinitiv’s FXall trading platform and “Settlement Center” post-trade solution for managing its FX transactions.
Market Savvy
Sterling at Ten-Week Low as Brexit Unease Overshadows budget – Reuters
Sterling languished at a ten-week low on Tuesday as concern about Britain’s departure from the EU led investors to largely ignore hopes of an end to austerity raised by Britain’s finance minister Philip Hammond.
Trade War Worries Boost Dollar Towards Recent Highs; Euro Struggles – Reuters
The dollar rose towards 2 1/2-month highs on Tuesday, supported by worries about an escalation of the Sino-US trade war. The euro, pushed lower by the stronger dollar, slipped as traders prepared for a swathe of data, including euro zone GDP and German inflation.
Major Chinese Banks Seen Swapping Yuan for Dollars in Forwards: Traders – Reuters
Major state-owned Chinese banks were seen swapping yuan for dollars in forwards CNYFWD= on Tuesday, but there was no immediate evidence of dollar selling in the spot market as the currency neared a key support level, three traders said.
The Australian Dollar Remains the Whipping Boy of Currency Markets – Business Inside Australia
The Australian dollar remains the whipping boy of currency markets, at least among the majors.