Top Headlines

FX Committee Surveys Show Drop in Trading Activity – Profit & Loss Announcing the results of their semi-annual FX volume surveys today, six central bank-affiliated foreign exchange committees reveal overall declines in trading volume during October against April 2015.

China, Japan Near Deal on Historic Economic Talks – Nikkei Japan and China have entered the final stage of talks aimed at creating a forum where both parties can regularly discuss economic and financial issues, a potential milestone for the two nations.

Mario Draghi Takes on Critics of ECB Stimulus in Speech in Germany – Wall Street Journal (subscription) ECB president says that ‘time and again, the critics of our decisions have been proved wrong.’

Hedge Funds Had Worst Year Since 2008 Betting on Commodities – Bloomberg Hedge funds betting on raw materials had the worst performance since the global financial crisis of 2008 as everything went wrong for commodities.

Africa Currency Crises Spark Diverging Central Bank Action – Bloomberg Africa’s biggest economies are taking opposite approaches on monetary policy as they struggle to cope with collapsing commodity prices and a slump in investor confidence.

China Can’t Paper Over Yuan-Policy Contradictions – Wall Street Journal (subscription) So long as the economic cycles of the U.S. and China are out of sync, Beijing’s dilemma will remain.

US Treasury May Cut Bond Sales to Boost Supply of Shorter-Term Bills – Wall Street Journal (subscription) Markets expect the U.S. Treasury to reduce the issuance of bonds maturing in a few years to make room for an increase in supply of shorter-term bills.



Regulatory News

Bloomberg-led Group Faces Delay Connecting US-China Markets – Wall Street Journal (subscription) Beijing’s control of currency may thwart efforts to encourage more yuan trading in US.

BoE Suggests ISDA Role in Benchmark Administration – FOW (subscription) The Bank of England has suggested that trade body the International Swaps and Derivatives Association could act as administrator of a default benchmark rate in the event that an existing benchmark becomes unavailable.

New DTCC White Paper Calls for Collaboration in Blockchain Technology – Automated Trader The Depository Trust & Clearing Corporation, the post-trade market infrastructure for the global financial services industry, has issued a white paper that calls for industry-wide collaboration in leveraging distributed ledger technologies.



Company News

McWilliams Next Up Against Citi – Profit & Loss The latest case of dismissed FX traders suing their former employers started at the East London Employment Tribunal today, with former Citi FX trader Carly McWilliams taking legal action against the bank for wrongful dismissal.

Why Deutsche Bank’s Trading Revenue Is Slumping in Three Charts – Bloomberg Deutsche Bank AG co-Chief Executive Officer John Cryan on Thursday will need to explain how the investment bank helped push Germany’s largest lender into its first full-year loss since 2008 as he seeks to boost profitability and restore investor confidence.



Market Savvy  

China Shares Plunge to Lowest Close Since Late 2014 – Wall Street Journal (subscription) Another bout of volatility hits Shanghai amid ongoing investor worries about a slowing China economy.

Yellen Losing Dollar Bet as Its Rise Slows Growth, Inflation – BloombergBusiness Federal Reserve Chair Janet Yellen and her colleagues have so far found themselves wrong-footed by the stronger dollar after they raised interest rates last month for the first time since 2006.

Emerging Market ETFs Lose More Than $1 Billion Led by China Flow – BloombergBusiness Investors pulled more than $1 billion out of U.S. exchange-traded funds that invest in emerging-markets as a third week of outflows left the ETFs down $3.9 billion this month.

UK Strength Ignored as Carney Frets About Global Threats – Bloomberg For Mark Carney, three years of non-stop growth and the lowest unemployment rate in a decade aren’t proving enough to nudge him toward a rate increase.



Press Releases

Foreign Exchange Transactions: Execution to Settlement Recommendations for Non-Dealer Participants – The Foreign Exchange Committee The Foreign Exchange Committee has updated its Execution-to-Settlement Recommendations for Non-Dealer Participants on its website.

FIA Releases SEF Tracker for December – FIA In the latest month, trading volume averaged $380.3 billion per day, in line with November but up 22% from December 2014. The year-over-year increase was driven entirely by increased trading of interest rate products. Both foreign exchange and credit trading were down year-over-year.

FXCM Teams Up with FlexTrade on CFDs – Profit & Loss FXCM has partnered with FlexTrade to provide pricing for CFD products. In a statement released today, FXCM says that it will be integrating its CFD pricing with FlexTrade’s technology.



Industry Events