Top Headlines

HSBC Traders Used Code Word to Trigger Front-Running, US Says – Bloomberg

A group of HSBC Holdings currency traders in London and New York feverishly jumped ahead of a $3.5 billion client order after they were tipped off using the code words “my watch is off,” a US prosecutor told a federal judge.

Sterling on Track for Worst Week Since 2016 Flash Fall – Financial Times (subscription)

The UK pound was poised to clock its worst week in a year after Theresa May’s botched address sparked uncertainty over the prime minister’s future and the path for Brexit.

Resurgent Dollar Hits Seven-Week High on Signals of Economic Resilience – Financial Times (subscription)

The US dollar has touched its highest point since August against a basket of major currencies, getting a boost from recent data pointing to resilience in the US economy despite a string of severe weather, as well as signs that the Federal Reserve could increase interest rates a third time by the end of 2017.

Dollar Lower or Steady at Best Over the Coming Year: Reuters Poll – Reuters

Most major currencies will hold on to their gains made in 2017 against the dollar over the coming year, according to a Reuters poll of currency strategists who were not entirely convinced of the US administration’s ability to pass through tax cuts.

The Real Deal – Profit & Loss (subscription)

Numerous firms have spotted an opportunity to capitalise on the current credit constraints in the FX market by offering a “prime-of-prime” solution.

FX Pros Bullish on Volatility – Euromoney

Investment managers are not only bullish about their ability to manage FX volatility in their portfolios no matter what the market throws at them – they continue to see it as an opportunity to generate additional returns. 

‘Mind-Boggling’ Math Could Make Blockchain Work for Wall Street – Bloomberg

A major breakthrough in cryptography may have solved one of the biggest obstacles to using blockchain technology on Wall Street: keeping transaction data private.

Bitcoin’s Rise Happened in Shadows of Finance. Now Banks Want In – Bloomberg

At first, bitcoin was a way to make payments without banks. Now, with more than $100 billion stashed in digital currencies, banks are debating whether and how to get in on the action.

Regulatory News

CFTC Pivots to FinTech Regulation to ‘Foster the Good, Protect Against the Bad’ – The Street

The three-pronged approach to regulating fintech innovation is aimed at breeding growth but maintain fair competition.

Randal Quarles, Trump’s First Fed Nominee, Wins Senate Approval – Wall Street Journal (subscription)

Former Treasury Department official is expected to lead a deregulatory agenda.

SEC’s Corporate Filing System Vulnerable to Denial of Service Attacks: Memo – Reuters

The US Securities and Exchange Commission (SEC), Wall Street’s top regulator, has discovered a vulnerability in its corporate filing database that could cause the system to collapse, according to an internal document seen by Reuters.

Crypto Coin Sales Get Fresh Regulatory Scrutiny as ECB Weighs In – Bloomberg

Regulators across the globe are increasingly taking an interest in initial coin offerings, with European Central Bank Governing Council member Ewald Nowotny being the latest to weigh in.

Company News

Kataria Joins Barclays – Profit & Loss

Profit & Loss understands that Ajay Kataria is joining Barclays in New York.

Thomson Reuters Also Enjoying September Uptick – Profit & Loss

Thomson Reuters (TR) is the latest FX platform to post strong September trading volumes, with figures released today showing that the average daily volume (ADV) of FX trading across all its platforms was $411 billion.

MTF Bilateral Trading Protocol Offers Mifid Arbitrage – Risk (subscription)

Nordic banks to use protocol to benefit from longer deferral period.

Market Savvy 

Australian Dollar Drops 0.7% on Interest Rate Speculation – Financial Times (subscription)

The Australian dollar fell as much as 0.7 per cent following a report that suggested the country’s central bankers would consider a further cut to interest rates if economic conditions worsened. 

Mexico Peso Weakness No Longer a Certainty as Elections Approach: Reuters poll – Reuters

Further weakness in the Mexican peso is no longer a sure bet after a two-month selloff drove the currency to three-month lows, the latest Reuters poll of market strategists showed, although other Latin American currencies are expected to fall.