Top Headlines 

‘I Owe It All to You’: Ex-Trader Decodes FX ‘Cartel’ Tactics – Bloomberg

Even after a group of British currency traders known as “The Cartel” began to sense their online chats were being watched, they didn’t stop illegally conspiring to rig the markets by using code words, one of them told a Manhattan federal jury.

Deutsche Traders Knew Libor-Rigging Was Illicit, Jury Told – Law360 (subscription)

Prosecutors have begun their final pitch to jurors in the Libor-rigging trial of former Deutsche Bank traders Matthew Connolly and Gavin Black.

Banks Demand Clarity from EU on No-Deal Brexit – Financial News (subscription)

The European Commission and EU regulators must urgently clarify how they intend to avoid “significant market disruption” if no agreement is reached in Brexit talks, an influential industry body has warned.

Hedge Fund Performance Edges Lower in September – Profit & Loss

Hedge Funds slipped 0.02% in September according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 0.57% increase in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is up 1.25%, while the S&P has gained 10.57%. 

Regulatory News 

EU’s Further Intragroup Clearing Relief: Banks Want More – (subscription)

Derivatives bankers across the European Union must have heaved a collective sigh of relief when the markets regulator said key exemptions from the clearing obligation should be extended. The problem is that is no replacement for a permanent solution.

Esma Delegates “Burdensome” Third Country Assessments – Global Investor (subscription)

The high number of Mifid II third country venue assessments may create “significant administrative burden”, Esma says.

Libor to Become Third-Country Benchmark Under No-Deal Brexit – (subscription)

UK-based reference rate would need to gain EU approval by end-2019 to avoid “unthinkable” disruption.

SEC Reopens Comment Period for Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major Security-Based Swap Participants – SEC

The Securities and Exchange Commission voted to reopen the comment period and request additional comment (including potential modifications to proposed rule language) on the proposed rules and amendments for capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants and capital requirements for broker-dealers.

ISDA Steps Away from Credit Determinations Admin Role – Global Capital

ISDA has moved away from its role as secretary of the special committees that rule on whether or not credit events have taken place that would trigger credit default swap payouts. 

Crypto News

Fidelity Starts Crypto Unit to Serve Wall Street Customers – Bloomberg

Fidelity Investments is jumping into the emerging cryptocurrency arena with a new business to manage digital assets for hedge funds, family offices and trading firms.

Crypto Exchange Coinbase Opens in Dublin Ahead of Brexit – Financial News (subscription)

Coinbase, the cryptocurrency platform backed by the New York Stock Exchange, has decided to open an office in Dublin as part of its contingency planning for Brexit.

Goldman Sachs’ Former COO Gary Cohn Joins Blockchain Startup – The Trade Crypto

Gary Cohn, who most recently served as director of the US National Economic Council and also chief economic advisor to President Donald Trump, has joined the board of advisors at the company known as Spring Labs.

Why Crypto Traders Are So Worried About Tether – Bloomberg

It’s one of the most hotly debated questions in the world of virtual currencies: Is Tether telling the truth when it says that each of its digital coins is backed by one US dollar? The answer could have big ramifications, given that Tether’s coin (also called Tether or USDT) is among the most actively traded cryptocurrencies – treated by many as a substitute for the greenback on crypto markets around the world.

CFTC Chair Giancarlo Says Institutional Investors Will Help Crypto ‘Mature’ – CoinDesk

An influx of institutional investors to the cryptocurrency markets may help the space “mature,” US Commodity Futures Trading Commission chair J. Christopher Giancarlo said.

Winklevoss Twins’ Gemini Crypto Exchange Adds Litecoin Trading and Custody – The Trade Crypto

Digital asset exchange Gemini has confirmed that it will make trading and custody in Litecoin available on its platform this month.

Hong Kong’s Securities Regulator Mulling Over New Rules for City’s Cryptocurrency Exchanges – South China Morning Post

Hong Kong’s Securities and Futures Commission  is exploring ways to regulate the various cryptocurrency trading platforms already operating in the city and thus tighten investor protection, says its outgoing chairman Carlson Tong Ka-shing. 

Company News 

Nasdaq to Implement CQG Trading Platform for US Treasuries – The Trade

US exchange operator Nasdaq has teamed up with CQG to implement its front-end trading platform for fixed income, specifically US Treasuries.

New Change FX Launches Surveillance Solution – Finance Magnates

The new ‘advanced protection system’ will aid compliance and operational risk divisions.

Nissan Securities to Distribute Trading Technologies’ Trading Platform – Finance Magnates

The agreement was co-announced on Monday and will allow Nissan to expand its trade execution technology.

CME Group Achieves Asia Pacific Average Daily Volume of 726,000 Contracts in Q3 2018, Up 4 Percent from Q3 2017 – CME Group

CME Group achieved Asia Pacific quarterly average daily volume of 726,000 contracts in the third quarter of the year, up 4% from the corresponding period last year. This was driven largely by a strong performance in Equity and FX products, up 41% and 36% respectively. 

Market Savvy 

Sterling Rises on Labour Data, But EU Summit Fears Curb Gains – Reuters

The pound rose above $1.32 on Tuesday after labour data beat expectations, but investors said doubts that a Brexit deal would be reached at a European Union summit this week would limit the currency’s advance.

Dollar Rises on Firmer US Yields; Yuan Struggles – Reuters

The dollar edged higher on Tuesday as firmer US Treasury yields encouraged investors to buy the greenback after a recent drop with investors growing more bullish about its short-term outlook, especially against emerging market currencies.

This FX Veteran Predicts the Dollar Will Plunge – Bloomberg

Ulf Lindahl, who hedges foreign exchange risk for pension funds and family offices in the US and Europe, forecasts a decline of 40 percent against the euro by 2024. Here’s why.