Top Headlines

FXPA Finishes Busy 2016, Prepares for 2017 – FXPA

The Foreign Exchange Professionals Association (FXPA) is finishing 2016 with a lot of work in progress and, as evidenced by recent requests for its insights, has further established its reputation as a trusted resource for policymakers. Launched in September 2014, FXPA welcomed six new members to the FX trade association during 2016, bringing the diverse organization’s membership up to 25 banks, buy side firms, trading platforms, clearinghouses, exchanges and technology companies.

Goldman Settles with CFTC Over ISDAfix Manipulation – Profit & Loss

Goldman Sachs has paid a $120 million fine after settling with the US Commodity Futures Trading Commission (CFTC) over accusations its traders attempted to manipulate the ISDAfix interest rate benchmark setting. Goldman neither admitted nor denied the charges in settling.

RBI Penalises Five Foreign Exchange Dealer Banks for FEMA Rule Violations – Domain-B

The Reserve Bank of India (RBI) has imposed monetary penalty on five authorized foreign exchange dealer banks for violation of RBI instructions on reporting requirements under the Foreign Exchange Management Act, 1999 (FEMA).

Prop Firm Fined for Spoofing – Profit & Loss

3Red Trading and its owner Igor Oystacher have been convicted of spoofing by a US District Court and fined $2.5 million.

Dollar Cools from 14-Year Peak, Swedish Crown Jumps – Reuters

The dollar retreated from a 14-year high, while the Swedish crown booked its biggest gains in six months after Sweden’s central bank voted by a thin margin to extend its bond purchase program.

Dollar Inches Up to ¥117.70 in Pre-Christmas Trade – Japan Times

The dollar edged up to levels around ¥117.70 in Tokyo trading, ahead of the Christmas weekend, with the Tokyo market to be closed for three days from Friday.

Sterling Slips to Two-Week Low vs Euro – Reuters

Sterling fell to a two-week low against the euro after a survey of British consumers showing a gloomy view of the economy’s prospects next year kept it on the defensive against a perky single currency.

Euro, Italian Shares Up on Monte Paschi Rescue Hopes – Reuters

European markets were poised for one last burst of action before the end of the year, with Italy expected to outline plans to rescue the world’s oldest and now its most troubled bank, Monte dei Paschi di Siena.

Bitcoin’s Total Value Hits Record High Above $14 Billion – Reuters

The total value of all bitcoins in circulation hit a record high above $14 billion, as the web-based digital currency jumped five percent on the day to its highest levels in three years after more than doubling in price this year.

Be It in Currency, Stocks or Bonds, India is Top Pick of Global Traders for 2017 – The Economic Times

Bonds, currencies and stocks in Asian emerging markets that are less dependent on external demand, such as India and Indonesia, are the most popular picks for investors and strategists next year.

The FX Analysis of the Year Accolade – Profit & Loss

Could it be San Francisco Federal Reserve president John Williams… or could it be Japan’s Shinzo Abe… or perhaps the IPSOS-MORI poll that predicted a Brexit remain win?

A Volatile Calm – The Paradox of 2016 Financial Markets – Reuters

Traditional measures of volatility at historic lows and Wall Street stocks at new record highs went hand-in-hand in 2016 with traders fretting about bouts of wild stock-price swings and currency flash-crashes.

Regulatory News

Regulatory Critic Added to Trump Transition Team for CFPB, FSOC – Wall Street Journal (subscription)

Kyle Hauptman, executive director of the Main Street Growth Project, appointed to team.

China May Adjust Investment in US Treasuries: FX Regulatory Official – Reuters

China may adjust its investment in US Treasuries while reductions in Treasury holdings is a tactical move, foreign exchange regulatory official Li Hongyan told reporters.

SECFTC – Breaking Views

What will be the top financial merger of 2017? It will be America’s two markets watchdogs – the Securities and Exchange Commission and the Commodity Futures Trading Commission – crunching into one über-regulator.

Company News

Big Banks Are Stocking Up on Blockchain Patents – Bloomberg

In the headlong rush to revolutionize modern finance, blockchain enthusiasts are overlooking one potentially costly problem: their applications, built on open-source code, may actually belong to someone else.

CME Hikes Position Limits on Russian Futures – FOW (subscription)  

CME Group has doubled the position limits on its Russian ruble/US dollar foreign exchange futures and options contracts.

Otkritie Capital Obtains Clearing Membership with MOEX’s FX Market – Finance Magnates

Otkritie Capital offers brokerage services spanning across equity, derivatives, fixed income, foreign exchange and commodities.

Market Savvy

Emerging-Market Stocks and Currencies Ride Out Post-Fed Declines – Bloomberg

Brazil’s real led gains among peers as the dollar wavered in light trading before the holidays.

Won and Taiwan Dollar Hit Multi-Month Lows – Reuters

The South Korean won hit a more than nine-month low and the Taiwan dollar touched a near five-month trough, as the outlook for Asian currencies remained clouded by expectations the Fed could raise rates at a faster pace next year.

Rupee Extends Rally, Rises 8 Paise to 67.83 Against Dollar – The Economic Times

The rupee extended gains and opened 8 paise higher at 67.83 against the dollar after the American currency lost some of the steam against a basket of top global currencies as investors booked some profit before the release of US economic data due later in the day.