Top Headlines

GFXC Frowns on Trading in the Last Look Window… with Exceptions – Profit & Loss

The Global Foreign Exchange Committee (GFXC) says it has concluded that Principle 17 “should indicate that market participants should not undertake trading activity that utilises the information from the client’s trade request during the last look window”.

FCA to Publicly Recognise Selected Codes of Conduct – FX Week (subscription)

The UK’s Financial Conduct Authority (FCA) will undertake a review of industry codes related to proper conduct and publicly recognise participants whom the regulator believes set good standards of behaviour in unregulated markets, including foreign exchange.

US Dollar Slips Ahead of Key Inflation Report; Euro Extends Rise – Financial Times (subscription)

The US dollar declined, with investors awaiting a key consumer inflation reading and continuing to bid-up the euro amid the brightening eurozone economic climate.

Sterling Hits Four-Week Low vs Euro After UK Jobs Data – Reuters

Sterling slipped to a four-week low against the euro, with inflation-lagging wages data not doing anything to challenge the view that the Bank of England will keep interest rates on hold after their first increase in a decade.

JPMorgan Asset Management Long on Sterling, Optimistic on Italian Debt – Reuters

The Bank of England’s decision to raise interest rates was a correct move and policymakers may raise them a couple of times next year, a top JP Morgan Asset Management executive said.

Euro Races Past the $1.18 Line as Inflows Intensify – Reuters

The euro popped above the 1.18 line for the first time in three weeks as investors resumed buying European equities while the dollar found itself on the back foot for a second day as US bond yields decline.

Mike Bloomberg Says London Will Stay Europe’s Financial Center Though ‘Dumb’ Brexit Will Cut Growth – Reuters

London will remain Europe’s financial center for the foreseeable future and keep its position alongside New York as one of the world’s dominant trading capitals though Brexit will reduce its growth, billionaire Michael Bloomberg said.

BofA Plans to Move About 200 Trading Staff to Paris, Frankfurt – Bloomberg

Bank of America will initially move about 200 sales and trading staff to Paris and Frankfurt as part of its Brexit plan, Chief Operating Officer Tom Montag said.

CLS Enters the Market Data Fray – Profit & Loss (subscription)

In September, CLS announced the launch of its new data service, CLSData. 

CME’s FANG and Bitcoin Futures Signal the End Is Near – Market Watch

This bond bear says stocks and bonds will crash together. 

Regulatory News

Democratic Regulator at CFTC Signals Openness to Tweaking Some Rules – Wall Street Journal (subscription)

The lone Democratic member of the Commodity Futures Trading Commission signaled in his first speech in the role that he is open to revising some postcrisis rules, while also vowing to protect the core regime put in place during the Obama administration.

Departing FDIC Chief: Postcrisis Rules Are There for a Reason – Wall Street Journal (subscription)

Martin Gruenberg, whose term as FDIC chairman ends this month, cautions that loosening regulations could bring another crisis.

White House Considers Former Pimco CEO Mohamed El-Erian for Fed Vice Chairman Post – Wall Street Journal (subscription)

The White House is considering economist Mohamed El-Erian as one of several candidates to serve as the Federal Reserve’s vice chairman, according to a person familiar with the matter.

Yellen Chides Fed Officials for Oversharing Their Policy Views – Bloomberg

In a rare public admission of frustration, Janet Yellen chided fellow Federal Reserve policy makers who breach the carefully nurtured collegiality of the bank by staking out policy positions before bothering to hear out the views of their colleagues.

Wall Street Fines Fall During First Year of Trump Administration – Wall Street Journal (subscription)

Penalties levied by the Securities and Exchange Commission dropped to a four-year low during the latest fiscal year, showing how a more friendly tone from regulators and the transition of political power can yield relief for Wall Street.

MiFID II May Push EU Trading Abroad – Markets Media

Octavio Marenzi, chief executive of consultancy Opimas, has warned that trading may shift away from the European Union after new regulations come into force in the region at the start of next year.

Company News

Thomson Reuters Enhances MiFID Capabilities – Profit & Loss

Thomson Reuters has enhanced its reference-data capabilities, available on its integrated data and analytics delivery platform, DataScope.

Hobert Joins BTIG – Profit & Loss

David Hobert has joined BTIG’s FC team in New York, to focus on developing new business.

Matherne Joins BNY Mellon as Global Head of FX Forwards – FX Week (subscription)

Paul Matherne is the latest staffer to make the switch from Deutsche Bank to BNY Mellon.

A Chicago Trading Firm Is Setting Up Shop in Singapore to Dominate the Bitcoin Market in Asia – Business Insider

DRW, a Chicago-based firm, is looking to set up a bitcoin trading desk in Singapore to dominate the cryptocurrency market in Asia. 

Market Savvy

Forex Markets Heat Up in Asia as Yen Gains, Australian Dollar Falls – Financial Times (subscription)

Forex markets heated up in Asia as economic data releases in the region bolstered the yen and undercut the Australian dollar.

Norwegian and Swedish Currencies Battered by Euro Rally – Financial Times (subscription)

Sweden and Norway’s currencies were testing levels usually seen only during financial crises, despite their healthy economies, as weak data and tumbling commodity prices exacerbated the effects of the euro’s renewed rally.