Top Headlines

Euro Edges Higher Ahead of ECB Decision – Financial Times (subscription)

The euro ticked higher, signalling muted investor concern that European Central Bank chief Mario Draghi will attempt to talk the currency down when he speaks later in the day.

Dollar Rebounds on Debt-Limit Deal; Euro Range-Bound Before ECB – Bloomberg

The dollar rebounded after President Donald Trump and Democrats agreed to a three-month extension of the US debt limit, paring an early decline seen in the aftermath of the Bank of Canada’s surprise decision to raise interest rates.

Sterling Steadies Above $1.30, Eyes on ECB – Reuters

Sterling inched lower, with dealers citing growing resistance to any further recovery against the dollar on a day set to be dominated by events in Europe and the United States.

Pound Shakes Off Economic Woes as Traders Set High Shock Bar – Bloomberg

Currency is up 6% this year despite underwhelming data.

Here’s What a North Korea War Might Mean for the Yen – Bloomberg

Strategists see initial appreciation when tensions escalate.

Blockchain Immature for Big Central Banks, ECB and BOJ Say – Reuters

Distributed ledger technology like blockchain is not mature enough to power the world’s biggest payment systems, though it has the potential to improve system resilience, the European Central Bank and the Bank of Japan said.

‘Potential Bubbles’ in Financial Markets Already Exist, Warns Deutsche Bank CEO – CEO

Most asset classes in the Western world are potentially overbought meaning that potential bubbles exist in certain markets, Deutsche Bank boss John Cryan warned.

FCA Sandbox Firm to Launch New Clearing Model as NDF Trades Soar – Euromoney

Many traders are pushing their non-deliverable forward (NDF) trades through clearing houses to increase capital efficiency – with LCH seeing a record-breaking number in August – and R5FX hopes to push this to the next level.

FX “A Real Trader’s Market” – Profit & Loss (subscription)

And it’s a good thing – because it reminds people that a good trader is worth their weight in gold.

Betting Against Bitcoin – Financial Times (subscription)

There could be a less risky opportunity for cryptocurrency sceptics.

One Week to Profit & Loss Scandinavia – Profit & Loss

Profit & Loss Scandinavia is right around the corner, and more than 175 registrations have already been received, but there is still time to register.

Regulatory News

Behnam Confirmed as CFTC Commissioner – Profit & Loss

Rostin Behnam has been sworn in as a Commissioner of the US Commodity Futures Trading Commission (CFTC).

Fischer Resigns from Fed Board – Profit & Loss

Stanley has Fischer submitted his resignation as vice chairman and as a member of the Board of Governors of the Federal Reserve System, effective on or around October 13, 2017.

President Trump Unlikely to Nominate Gary Cohn to Become Fed Chairman – Wall Street Journal (subscription)

Cohn’s chances dropped after he criticized Trump’s response to the Charlottesville protests, according to people familiar with the president’s thinking.

No Law Needed on Insider Trading, SEC Chief Says – Wall Street Journal (subscription)

Jay Clayton says agency doesn’t need Congress to specify what is illegal.

UK Regulators to Scrutinise Digital Coin Market – Financial Times (subscription)

Financial watchdog turns sights on initial coin offerings, days after China ban. 

ECB Working on Licensing Rules for Fintechs, Nouy Says – Reuters

The European Central Bank is working on new licensing guidelines that would also cover financial technology firms, Daniele Nouy, the ECB’s top bank supervisor told a conference. 

Bank of England Has ‘Significant Concern’ Over Post-Brexit Approval for Deutsche Bank’s UK Branch – Business Insider

Supervisors at the Bank of England expressed “significant concern” to Deutsche Bank in a letter concerning its UK branch authorisation ahead of Brexit, according to a leaked internal document from the German lender.

Mifid II Means Consolidation or Fragmentation? – FOW (subscription)

Experts have warned Mifid II will require continuous changes in compliance throughout 2018.

Company News

Eurex Urges More Regulators to Endorse VM Capital Savings – Risk (subscription)

CME, Ice and LCH treat variation margin as settlement; Eurex awaits further guidance.

Integral Rolls Out MiFID II Functionality – Profit & Loss

Integral has rolled out specific solutions for MiFID II compliance.

Moex Launches FX Fixing Instruments – Profit & Loss

Moscow Exchange (Moex) is now offering instruments to trade at the Moex FX USD/RUB and EUR/RUB fixing prices with clearing and settlement via its clearinghouse, NCC Clearing Bank.

Cobalt Joins BT Radianz Cloud – Profit & Loss

Cobalt, the FX post-trade processing network based on distributed ledger technology, has joined the BT Radianz Cloud.

Bitcoin Exchange BitFlyer Preps for US launch – Markets Media

The first US bitcoin exchange could be open as early as this fall, if everything goes according to plan.

Market Savvy

Renminbi Strengthens Past Rmb6.5 for the First Time in 16 Months – Financial Times (subscription)

The renminbi touched a new 16-month high against the dollar as the greenback weakened.

Canadian Dollar Surges Higher After Surprise Rate Tightening – Financial Times (subscription)

Loonie climbs to highest level in two years after central bank delivers rate rise.

Brazil Stocks, Currency Rise Ahead of Central Bank Rate Cut – Reuters

Brazil’s stocks and currency rallied before the central bank cut interest rates to a four-year low after the market closed, seeking to spur an incipient economic recovery.