Top Headlines
FINRA Seeks Quicker Process on Disruptive Quoting – Profit & Loss
The US Financial Industry Review Authority has filed a notice with the Securities and Exchange Commission that will enable it to clamp down on what it considers “disruptive quoting and trading activity” much quicker than is currently possible.
China Forex Regulator Tightens Controls to Stem Capital Outflows: Sources – Reuters
China is stepping up measures to stem capital outflows after the yuan currency skidded to more than eight-year lows, sources said, taking aim at outbound investments that have soared to a record high.
Pound Enjoys Respite as Brexit Risk Looms – Financial Times (subscription)
A surging US dollar on the foreign exchange market has encountered one obstacle — in the form of pound sterling.
Pound Breaks Below $1.24 as Brexit Debate Intensifies: Chart – Bloomberg
The pound tumbled, paring a rally that has sent it higher for three of the past four weeks.
Pound Declines Against Dollar and Euro Ahead of Economic Data – International Business Times
Dollar pauses for breath as investors cash in profits, while euro remains stable ahead of Italian referendum.
“Mini-dollar” Tag Set to Aid Sterling in 2017 – Reuters
While others rushed to bet on a weaker pound this summer, hedge fund Harmonic Capital Partners’ algorithms moved in the opposite direction and three months later gave the firm one of its best trading results of the year.
History suggests the initial reaction by investors after a US election isn’t always the right one.
Trump Bubble Burst Will Drive Yen to 98 per Dollar: UBS Wealth – Bloomberg
UBS Group’s $2 trillion wealth-management arm says yen traders have got Donald Trump all wrong, and the currency will strengthen to 98 per dollar by this time next year.
NFA Shifts FX Margins – Profit & Loss
The US National Futures Association has raised margin requirements on three currencies whilst cutting one.
Asian Markets Cautious as Dollar Continues Retreat – Financial Times (subscription)
Markets around Asia are trading cautiously as Wall Street and the US dollar weakened overnight and the price of oil has pulled back.
Southeast Asia Currency Slide Inflates $20 Billion Debt Bill – Bloomberg
The amount that the area’s companies, banks and governments must repay on dollar-denominated bonds will rise eight percent next year to $19.7 billion, just as a slide in Asia’s currencies to the weakest this decade threatens to push up servicing costs on that debt.
Tullett Prebon Wins Icap Deal Approval from German Regulator – Financial Times (subscription)
Both parties prepare for £1.1bn deal to close at the end of the year.
Bitcoin to Play Dominant Role in Global GDP, Chinese Investor Predicts – FX Pips
Global gross domestic products around the globe will soon be measured in terms of bitcoin. At least, this is how Chandler Guo, the noted Chinese investor, sees it.
Regulatory News
Bank Regulators Seek ‘Miracle’ Deal on Capital Before Trump – Bloomberg
Global banking regulators are scrambling to reach a compromise on new capital standards, as political support wanes in Europe and the US for new curbs on the industry.
EU Proposes Rules to Stop ‘Too Big to Fail’ Clearing Houses – Reuters
The European Union has proposed rules for dealing with failing clearing houses to try to stop the rapidly growing sector from becoming “too big to fail” and holding taxpayers to ransom in a crisis.
Dodd-Frank Rules on Business: Up for a Rethink – Wall Street Journal (subscription)
As Donald Trump vows to dismantle financial-overhaul law, corporate CFOs sort the costly provisions from the beneficial.
ISDA and IHS Markit Collaborate on VM Protocol Tool – Profit & Loss
The International Swaps and Derivatives Association and IHS Markit have announced the launch of the ISDA 2016 Variation Margin Protocol on ISDA Amend.
Bank of Israel Regulation for Shekel Derivatives Commences in January 2017 – Finance Magnates
Reporting obligations apply to all financial entities that trade shekel derivatives.
Company News
ICE Appoints Singapore Chair – Profit & Loss
The Intercontinental Exchange has announced the appointment of Lee Yi Shyan as chairman of ICE Futures Singapore and ICE Clear Singapore effective November 24 2016.
A new London based FX and CFD provider, True Trade, founded by industry veterans Klaus Buhl, Ashraf Agha, and Paul Cassidy is set to launch in 2017 with its FCA license having been granted in late November 2016.
ThinkLiquidity Unveils Transaction Scoring System – Profit & Loss
US-based technology firm ThinkLiquidity has launched a transaction scoring system featured in its new Web application QuantView.
Trading Firm Virtu to Buy Telecom Assets from Teza – Financial Times (subscription)
Virtu Financial said that it was buying telecommunications assets from fellow high-speed trader Teza Technologies.
Market Savvy
Most emerging Asian currencies weakened on views that the dollar’s weakness in the last few sessions won’t last long, but China’s yuan hit a one-week high as state-owned banks stepped in to buy the currency for a second day.
C$ Tracks Oil Higher; Poloz Indicates High Bar to Cut – Reuters
The Canadian dollar strengthened to a nearly one-week high against its US counterpart as oil rallied ahead of a meeting of major oil producers, while Bank of Canada Governor Stephen Poloz indicated a high bar to cut interest rates.
The Australian Dollar Surges on OECD Upgrade, Chinese Coal and Steel Cuts – Pound Sterling Live
The pound to Australian dollar exchange rate has fallen to its lowest level in ten days as the Australian currency is supported by the recovery in global commodity prices.