Top Headlines

FXPA Provides Feedback to GFXC on Last Look – FXPA

The Foreign Exchange Professionals Association (FXPA) provided feedback to the Global Foreign Exchange Committee (GFXC) on the “last look” practices in the foreign exchange (FX) market, and particularly on Principle 17 of the FX Global Code.

• Can Forex Traders Keep Each Other Honest? QuickTake Q&A – Bloomberg
• Last Look Consultation Closes, Outcome Uncertain – FX Week (subscription)

Dollar Wane Continues Post Fed Meeting; Euro, Pound Muted – Financial Times (subscription)

The dollar continued to retreat, paring back gains from a bump on Wednesday after the Federal Reserve confirmed it would begin shrinking its balance sheet.

• Dollar Fluctuates as Investors Recalibrate Positions After Fed – Bloomberg
• Dollar Stalls After Fed Decision – Wall Street Journal (subscription)

Sterling Hovers Below $1.36 as Investors Await May’s Brexit Speech – Reuters

Sterling traded within a tight range against the dollar while investors waited for a speech by British Prime Minister Theresa May in which she is expected to try to rescue stalled Brexit talks.

Emerging-Market Rally Is Just the Beginning, Top Investors Say – Bloomberg

The two-year rally across emerging-market assets is just the beginning, according to some of the world’s largest investors.

In the FICC of It: Surprise Optimism Regarding FXPB – Profit & Loss (podcast)

We’ve just published our Q3 edition of Profit & Loss magazine, which includes our prime services special report, and I wanted to share some thoughts about one segment of it.

Are Cryptocurrencies Edging Towards Mainstream Adoption? – Profit & Loss (subscription)

Mainstream financial services firms have long been keeping an eye on cryptocurrencies, but while certain trading firms are already active in this asset class, many more heavily regulated institutions have generally shied away from the space due to compliance concerns.

Rupee Doubters Emerge as Cracks Seen in India Macro Picture – Bloomberg

The rupee’s status as one of the most-loved Asian currencies is being tested by India’s faltering economy and signs that its markets are overheating.

Age-Old Task of Balancing Books is Top of Ghana’s To-Do List – Financial Times (subscription)

The Ghanaian cedi has been a baro­meter for economic underperformance in recent years.

Regulatory News

Hack of Wall Street Regulator Rattles Investors, Lawmakers – Reuters

Wall Street’s top regulator came under fire over its cyber security and disclosure practices after admitting hackers had breached its database of corporate  announcements in 2016 and may have used it for insider trading.

• Hack Response Opens SEC to Criticism – Wall Street Journal (subscription) 

EU Starts Work on New Short Term Benchmark Rate – Global Capital (subscription)

European authorities have announced the start of work to identify a risk-free overnight rate, to be provided by the European Central Bank by 2020. 

Beat or Miss? MiFID Will Make It Harder to Tell on Earnings Day – Bloomberg

The overhaul of financial-services rules known as MiFID II will lead banks to reduce coverage of some companies as a price war forces them to cut costs.

Company News 

RBC Signs with BestX – Profit & Loss

RBC Capital Markets has added BestX to the transaction cost analysis (TCA) tools available to its global e-FX clients.

CME Launches FX Link to Create OTC/Futures CLOB – Profit & Loss

CME is partnering with Citi’s FX prime brokerage unit, which will act as central prime broker for the spot FX transactions resulting from the spread.

China Bans Bitcoin Executives from Leaving the Country, Miners “Preparing for the Worst” – Trustnodes

The draconian measure is undertaken following a decision by China’s Communist Party to close down all crypto exchanges, with trading volumes in the country dropping considerably.

Market Savvy

North Korea Nerves Knock Dollar Against Yen – Reuters

The dollar buckled against the yen as tensions simmered on the Korean peninsula, though the sharp divergence between US and Japanese monetary policy kept the greenback on track for a winning week against the yen.

Slumping Australian Dollar Has Its Worst Day in Four Months – The Sydney Morning Herald

The Australian dollar recorded its biggest fall for a single session in four months, with analysts suggesting it could fall lower still.

Asia Stocks Slip, Yen and Franc Rise as North Korea Moots H-Bomb Test – Reuters

Asian stocks fell and the Japanese yen and Swiss franc gained after North Korea said it might test a hydrogen bomb in the Pacific Ocean and escalated a war of words with US President Donald Trump.