Top Headlines

Euro Steadies After Biggest Daily Fall in a Month – Reuters

The euro steadied after notching up its biggest fall in nearly a month in the previous session as investors shrugged aside concerns of any fallout from the German political deadlock for now.

Budget in Focus as Sterling Rises to Two-and-a-Half Week Highs – Reuters

Sterling rose for a fifth consecutive session as investors bought the British pound, judging the weekend’s news around the progress of Brexit negotiations to be mildly positive for the struggling currency.

Forget the Fed: The Long Bond Is Deciding the Dollar’s Future – Wall Street Journal (subscription)

The foreign exchanges have a message for central bankers: the short-term interest rates they set aren’t the big deal they once were.

Deutsche Börse Eyes City of London’s Euro Clearing Crown – Financial Times (subscription)

More than 20 investment banks and market makers have signed up for Deutsche Börse’s attempt to draw London’s prized swaps clearing business from its City home.

EU Picks Paris as New Host for EBA After Brexit, Sources Say – Reuters

The European Union has picked Paris as the new host for its London-based banking authority after Britain leaves the bloc, in a second drawing of lots in just one evening, following three rounds of voting that failed to produce a winner.

Draghi Warns Brexit Could Put Financial Stability at Risk – Wall Street Journal (subscription)

European Central Bank president calls Brexit an ‘important existential event’ for the EU.

Barnier Warns City of London to Scale Down Brexit Hopes – Financial Times (subscription)

The EU has warned Britain to lower its expectations of market access for the City of London after Brexit, delivering a blow to the UK’s hopes of a trade deal that maintains current flows of capital, staff and services.

Morgan Stanley Sees Aussie Sliding to 65 Cents – Bloomberg

Australia’s dollar is set to fall to the weakest since the aftermath of the global financial crisis in 2009 as it loses its standing as a high-yielding currency, according to Morgan Stanley.

The Modi Magic Behind India’s Unstoppable Rally – Financial Times (subscription)

It was difficult to tell who was more delighted by Moody’s decision to upgrade India’s sovereign rating on Friday: the government in New Delhi or investors.

Blockchain Gets a Wall Street Win: ‘We Know the Thing Works Now’ – Bloomberg

The prospect of blockchain technology remaking financial services just moved a step closer to reality after banks including Goldman Sachs and JPMorgan completed a successful six-month test in the $2.8 trillion equity swaps market.

Drilling for the New Oil – Profit & Loss (subscription)

If data is the new oil, then how trading firms “drill” it in order to generate alpha becomes increasingly important.

Bitcoin Has an Unusual Relationship with Volatility – Bloomberg

Too much hype could be the sign of a cryptocurrency bubble.

Regulatory News

EBA and Eiopa Confirm Changes to VM Rule for Forwards – Risk (subscription)

European regulators have confirmed they are amending a rule that requires buy-side firms to post and collect variation margin on certain foreign exchange forwards from January 3 next year, in a fresh sign that the unpopular requirement will be permanently shelved.

MAS Issues Best Execution Consultation Paper – Profit & Loss

The Monetary Authority of Singapore (MAS) has issued a consultation paper as part of its plans to formalise expectations for holders of a capital markets services licence, banks, merchant banks and finance companies to have in place policies and procedures to place to ensure best execution and to support fair outcomes for customers. 

Yellen Says She’ll Leave Fed Once Powell Is Sworn in as Chairman – Bloomberg

Federal Reserve Chair Janet Yellen said she will step down from its Board of Governors once her successor is sworn into the office, widening the scope for President Donald Trump to shape the US central bank’s leadership for years to come.

Company News

CME Says Bitcoin Futures Coming This Year, But Date Not Set – Reuters

CME Group, the world’s biggest futures exchange, said it still plans to launch a futures contract for bitcoin this year, but that a notice on its website stating the contract would begin trading on December 11 was posted in error.

Amsterdam Has Won the Trust of Another London Financial Firm Preparing for Life After Brexit – Quartz

Amsterdam won another prize from London, as financial companies in the British capital plan for life after the EU: Michael Spencer, CEO of NEX Group and a London financial grandee, said the company has chosen Amsterdam as its base on the continent.

ACI Russia to Lead Formation of Local FXC – Profit & Loss

ACI Russia, a member of ACI – The Financial Markets Association, has unveiled a Russian language version of the FX Global Code as well as plans to create the Moscow FX Joint Standing Committee, which it says will be based upon the self-regulatory organisation National Finance Association.

Market Savvy

Bitcoin Hits Record High After Smashing Through $8,000 for First Time – Reuters

Bitcoin hit a new record high after smashing through the $8,000 level for the first time over the weekend, marking an almost 50 percent climb in just eight days. 

Forex Trade Cools Off in Asia After Volatile Session – Financial Times (subscription)

Currency markets were cooling in early Asia trade with the euro holding steady following a volatile session on Monday.

Turkish Lira Hits New Lows as Central Bank Adjusts Banks’ Borrowing Limits – Financial Times (subscription)

The Turkish lira sank to new record lows while the central bank sought to stop the rot in the currency.