Fed Cuts Interest Rates, Signals Holding Pattern for Now – Reuters

The US Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump.

Jittery Repo Market Has Calmed, But Fed Plans to Intervene Again – Bloomberg

Let’s do it again tomorrow. The Federal Reserve made crystal clear that it doesn’t want U.S. money market rates to spike again like they did early this week, announcing it will – for the third day in a row – inject cash into this vital corner of finance.

Juncker Doubts Chances of Striking Brexit Deal – Financial Times

European Commission president says ‘very little time’ remains with UK yet to outline backstop solutions.

US Trade Groups Urge Congress to Rein in ‘Tariff Man’ Trump – Reuters

Nearly two dozen U.S. lobbying groups have joined forces to try to rein in U.S. President Donald Trump’s power to unilaterally impose tariffs amid growing concern about the negative economic impact of his trade policies.

Electoral Maths Leave Netanyahu’s Future Hanging in the Balance – Financial Times

Benjamin Netanyahu’s political future was hanging in the balance on Wednesday, as a near-complete vote tally from the general election showed his path to a record fifth term as Israeli prime minister blocked, and rivals explored options to dethrone him.

An Army of Japanese Salarymen is Rocking Global Currency Markets – Yahoo Finance

Popular tales of “Mrs. Watanabe” – the canny Tokyo housewife who dabbles in currency trading in between school runs and shopping – barely begin to tell the story of Japan’s retail traders in the foreign exchange market.

Argentina’s Central Bank Raises Rate Floor to 78% as Prices Soar – Bloomberg

Argentina’s central bank raised a floor on its benchmark interest rate to 78% from 58% for the rest of September as the government fights a resurgence in inflation triggered by political uncertainty.

Why the BIS Turnover Survey is a Gloomy Read for Some in the FX Industry – Profit & Loss

I am struggling to find someone who was not surprised by the BIS data on Monday, but there is one small segment of the industry to whom the report was more of a nightmare than a surprise.

Regulatory News

SEC Joins Other Regulators in Ok’ing Volcker Rule Changes – Law360

The U.S. Securities and Exchange Commission on Wednesday announced it had followed other federal agencies with responsibility for the financial sector in approving a final set of changes to the Volcker Rule’s ban on proprietary trading.

CFTC’s Technology Advisory Committee to Meet On October 3 – Mondovisione

The U.S. Commodity Futures Trading Commission’s Technology Advisory Committee (TAC) announced today that it will hold a public meeting on Thursday, October 3, 2019, at the CFTC’s Washington, DC headquarters.

US Bankers Seize on Repo-Market Stress to Push for Softer Liquidity Rules – Reuters

Big US banks are using the recent chaos in short-term funding markets as an opportunity to pressure the Federal Reserve to ease liquidity requirements they have long despised.

“Significant Number” of ISIN Users Not Becoming Sis – FOW

DSB reports many sell-side institutions are using ISINs for alternative reporting purposes.

Crypto News

Wells Fargo to Launch Proprietary Digital Currency – Decrypt

Banking giant Wells Fargo is beginning a pilot for a digital currency, with plans to use it to cheaply settle cross border trades. 

DOJ Brings Extortion Charges Against Early Advisor to Ethereum, tZero – Coindesk

U.S. law enforcement has charged Steven Nerayoff, an early supporter of the ethereum project and a former paid advisor to Overstock’s tZero, with extortion.

SEC Charges Token Sale Platform ICOBox with Securities Violations – Coindesk

The U.S. Securities and Exchange Commission (SEC) alleged that ICOBox and founder Nikolay Evdokimov violated securities laws with its 2017 token sale and subsequent activity facilitating other initial coin offerings (ICOs).

New Bitcoin Mutual Fund Eases Crypto for Wary Asian Investors – Coindesk

Hong Kong-based venture capital group CMCC Global launched its Liberty Bitcoin Fund to provide crypto currency access to accredited investors in Asia who are very interested but have been slow to buy the coins directly.

Company News

EBS Direct Targets a Broader Client Base with Platform Rebuild – Profit & Loss

As CME Group prepares to announce the launch of a new platform for EBS Direct, Jeff Ward, global head of EBS, outlines what the platform will offer and how trading venues can differentiate themselves in an increasingly data-driven environment.

Chicago Options Exchange to Move Headquarters, Open New Trading Floor – Chicago Sun Times

Cboe Global Markets, parent company of the Chicago Board Options Exchange, will move its headquarters to the Old Post Office; the trading floor is moving to the Chicago Board of Trade Building.

HKMA and the BIS Sign Operational Agreement on the BIS Innovation Hub Centre in Hong Kong SAR – Mondovisione

The Bank for International Settlements (BIS) and the Hong Kong Monetary Authority (HKMA) have today signed an Operational Agreement on the BIS Innovation Hub Centre in Hong Kong SAR.

Deutsche Bank Faces ECB Scrutiny Over Unapproved Debt Deals – Financial TimesDeutsche Bank faces the threat of a European Central Bank investigation after buying and selling its own debt for more than three years without regulatory approval, said people familiar with the matter.

LSE Calls in JPMorgan to Fend Off £32bn Hong Kong Bid – Financial News

The London Stock Exchange has drafted in bankers from JPMorgan to help it fend off Hong Kong Exchanges and Clearing’s £31.6bn bid.

Market Savvy

Dollar Rallies as Cautious Fed Clouds Rate-Cut Outlook – Reuters

The dollar stood tall on Thursday after the U.S. Federal Reserve cut rates by 25 basis points, as expected, but its chairman signalled a higher bar for future rate cuts.

Sterling Falls After Weaker-Than-Expected Inflation – Reuters

Sterling fell on Wednesday after British prices in August grew at their slowest pace since late 2016, while concerns about whether a last-minute Brexit deal was achievable also weighed on the currency.

Negative Interest Rates Take Investors into Surreal Territory – Financial Times

The markets are vulnerable to potential nasty losses if rates suddenly shoot up.