Fed Keeps December Rate Hike in Play

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Top Headlines

Fed Keeps December Rate Hike in Play – Wall Street Journal (subscription) Officials remove explicit mention of concern at overseas tumult, delivering warning to markets.

Bank of Japan Seen Holding Fire as Output Rebound Offers Some Relief – ReutersBoJ is expected to hold monetary policy steady on Friday even while diluting its rosy inflation forecasts.

Brazil’s Real not Affected by Revelations of FX Probe – Reuters The Brazilian real was not affected by revelations from an investigation of an alleged currency cartel formed by some of the world’s largest banks in the South American country, central bank director Aldo Mendes said on Wednesday.

High-Speed Traders Slow to Break Into Interest-Rate Swaps Market – Bloomberg Some of the biggest computerized-trading firms are facing obstacles as they try to move into interest-rate swaps, a $381 trillion market that has yet to be dominated by automated buying and selling.

Non-Traditional Market Makers Divide SEFs – Markets Media Since swap execution facilities introduced agency access, it has opened the door open for hedge funds and other market participants to access interest rate swap and credit default swap markets, and has concerned other about what it will do to market quality.

Fintech Competition Heats up – Markets Media Peter Randall, former chief executive and founder of Chi-X, believes his experience at the pan-European equities trading venue will help SETL win the battle to become the blockchain platform used for institutional payments and settlements.

 

 

Regulatory News

CFTC Divided Over Approach to Swaps Regulation – Profit & Loss Comments from Commodity Futures Trading Commission (CFTC) staff at the SefCon VI conference in New York on Monday highlighted divides within the Commission about how to most effectively amend swaps regulations.

Exchanges Band Together to Seek Softer Bank Capital Rules – FT.Com (subscription) A group that includes some of the world’s largest exchanges has written to the head of a leading international regulator in an attempt to soften bank capital rules.

 

 

Company News

Ex-Virtu Head Trader Returns to Lead Rival in Europe – Financial News (subscription) Jamal Tarazi has joined the London office of Global Trading Systems, a large computer-driven trading company based in New York that is preparing to ramp up its trading in European securities, as head of its business in Europe.

Deutsche Bank to Shrink Workforce by About 26,000 in Revamp – Bloomberg Deutsche Bank AG said it will shrink the lender’s workforce by about 26,000 people by 2018 as co-Chief Executive Officer John Cryan seeks to improve returns.

Is HSBC Too Big to Stay in the U.K.? – Wall Street Journal (subscription) Global lender’s balance sheet is nearly as big as Britain’s economy.

Barclays Says 1 Billion Pound UK Separation Costs to Hit Profit – Reuters British bank Barclays Plc said it will spend 1 billion pounds to shield its domestic retail customers from riskier parts of its operations, prompting it to raise its guidance on costs for next year and cut its returns target.

 

 

Market Savvy  

Parker FX Index Falls in September – Profit & Loss The Parker FX Index showed a -0.77% loss for the month of September, trimming the year-to-date return down to 1.44%.

EUR/USD Parity Still a Brave Call Says JPM – Profit & Loss Although the European Central Bank (ECB) did not commit to rate cuts, QE extension or QE upsizing at last week’s meeting, market participants have seen enough “burlesque winks” from ECB President Draghi and the Governing Council to expect something material in December, according to analysts at JP Morgan.

Ben Bernanke Identifies The Global Economy’s Largest Problem: Bankers’ Short Term Memories – Forbes I’m not sure that I actually agree with this identification of the global economy’s largest problem by Ben Bernanke. The pointing to it as “a” problem in the short to medium term, yes, that I’ll go along with.

 

 

Press Releases

Jazz Banquet in Aid of Futures for Kids – Profit & Loss Kite Consulting Group announced a Networking Jazz Banquet in aid of Futures for Kids, the children’s charity sponsored by FIA Europe.

Three More Banks Join R3 Distributed Ledger Initiative – Profit & Loss Three more banks have joined R3’s consortium to design and apply distributed ledger technologies to global financial markets.

 

 

Industry Events