Frustrated Johnson Faces Brexit Delay – The Times

Boris Johnson is facing a Brexit delay of up to three months after MPs derailed his plan to rush a deal through the Commons.

Beijing Draws Up Plan to Replace Carrie Lam as Hong Kong Chief – Financial Times

The Chinese government is drawing up a plan to replace Carrie Lam, Hong Kong’s leader, with an “interim” chief executive following violent protests against her administration, according to people briefed on the deliberations. 

Germany Set to Appoint Isabel Schnabel to ECB Board – Financial Times

The German government is set to nominate Isabel Schnabel, an economics professor and government adviser, to the executive board of the European Central Bank, marking a potentially important shift in both strategy and policy.

Fed Adds Temporary and Permanent Liquidity to Financial System – Wall Street Journal

The Federal Reserve Bank of New York injected $99.9 billion in temporary liquidity and $7.5 billion in permanent reserves into financial markets Tuesday.

After the Election, Can Justin Trudeau Unite Canada? – The Economist

Canada’s general election, held on October 21st, proved more divisive than decisive.

Trump’s G7 and Trade Adviser Kelly Ann Shaw to Leave White House: Officials – Reuters

President Donald Trump’s G7 and trade adviser, Kelly Ann Shaw, is leaving his administration for a position in the private sector, White House officials said, marking the departure of one of the most senior women on the president’s economic team.

Monetary Policy is Better than Fiscal Stimulus – Australian Financial Review

Newly appointed Australian Treasury secretary Steven Kennedy says that monetary policy remains a better response than fiscal stimulus to generate economic growth.

Brussels Fires Warning Shots at France Over 2020 Budget Plans in Blow to Macron – Daily Telegraph

Brussels has fired a warning shot at France over its 2020 spending plans in a humiliating blow for President Emmanuel Macron, after he slashed taxes to appease the “yellow vest” protestors.

Regulatory News

Clearing Reforms Set to ‘Disrupt’ Asset Management – Financial Times

Global regulators might have delayed completion of a major reform of derivatives trading rules by a year, but currency markets are already changing in anticipation. One aspect of the reform that investors and dealers can agree on is that trading costs will rise — the question is only how much, and who will pay.

US Regulators Take a Closer Look at Exchanges’ Data Fees – Financial Times

The dominant US exchange groups are fighting to expand their market data businesses but face a stand-off with the securities regulator over fees.

Race to Create Term Risk-Free Rates Hots Up – Risk

More entrants are joining the contest to provide forward-looking versions of overnight risk-free rates, despite UK regulators playing down the long-term prospects of such projects.

CME Publishes SOFR Transition Plan – FOW

CME group publishes proposals for SOFR discounting and price alignment for cleared US dollar interest rate swaps.

Are We Misunderstanding the Elements That Lead to Good Governance? – Lexology

What does good governance really mean? What does it mean to follow best practices? Are there really best practices that make sense for all companies? 

Crypto News

Libra Retreat Would Bring Joy and Relief to Asia – Bloomberg

Facebook Inc.’s idea of a global cryptocurrency may get demoted to something more humble. You can almost hear a collective sigh of relief from Asian central banks.

The Threat and the Promise of Digital Money – Financial Times

Cryptocurrencies look overhyped, the new payment platforms useful and Libra worrying.

Bitcoin Speculators Gain Upper Hand as Derivative Trading Surges – Bloomberg

As Bitcoin becomes boring for many in the get-rich-quick crowd with volatility ebbing, trading in derivatives of the largest cryptocurrency is exploding.

Central Bank Digital Currency: One, Two or None? – Google Scholar

This paper considers the motives, modalities, and possible consequences of central bank digital currency issuance, starting by drawing a distinction between a wholesale and retail digital currencies.

US Lawmaker Introduces Bill Classifying Stablecoins as Securities – Coin Desk

Congress may consider a bill to classify stablecoins – cryptocurrencies whose values are pegged to a fiat currency or other assets – as securities.

Company News

Greenwich Claims 25% Increase in FX Algo Trading – Profit & Loss

A new report from Greenwich Associates claims that the adoption of algos by FX market participants has increased by 25% year-on-year.

Brevan Howard Profits Spike in Recovery Year for Macro Investor – Financial News

Profits and revenues jumped at Brevan Howard in 2019, suggesting the celebrated global macro hedge fund may be turning a corner on a period of poor performance and lean results.

Eurex Consulting on Inter-Dealer OTC Clearing – FOW

Eurex Clearing is inviting market responses on the extension of its clearing service to cover all OTC currency products.

European Banks Run Out of Options to Protect Profits – Financial Times

Negative interest rates, new regulations and sluggish economy mean tougher challenges.

Market Savvy

Whether it is the US Stick or the Chinese Carrot, Foreign Policy Boils Down to the Use of Money – South China Morning Post

China dangles carrots by offering belt and road investments, and its vast market and trade, while the US wields the stick of sanctions and threats to withdraw financial support. But both rely on the common influence of money to persuade others.

Pound’s Streak of Big Moves Extended – Financial Times

Sterling has moved in greater than 1% range for nine consecutive trading days.

Brazil Markets Surge Ahead of Final Vote on Pension Reform Bill – Reuters

Brazilian markets surged on Tuesday ahead of the expected final approval of a landmark pension reform bill aimed at helping to curb the mounting fiscal deficit in Latin America’s largest economy.