Top Headlines

Is the Global Code of Conduct in Trouble Already? – Profit & Loss

The opening panel discussion of this year’s Profit & Loss Forex Network Chicagoconference featured an unusually frank and honest discussion about thechallenges associated with implementing the FX Global Code of Conduct. 

US Banks’ FICC Earnings Drop in Q3 – FX Week (subscription)

Amid subdued foreign exchange volatility in the third quarter of this year, most US banks saw their revenues from fixed income, commodities and currencies fall against both the second quarter and the corresponding period of 2017. Citi, however, bucked the trend and managed to eke a marginal increase over both time periods.

CME Completes £3.9 Billion NEX Group Acquisition – The Trade

CME Group has confirmed that it has completed its £3.9 billion acquisition of London-based NEX Group, forming a combined company for futures, cash and OTC markets.

Meet 2018’s Rising Stars of Wall Street Shaking Up Investing, Trading, and Dealmaking – Business Insider (subscription)

Whether closing multibillion-dollar investments, making huge trades, or leading the future of crypto, this crop of young finance leaders are making an impact.

Regulatory News

UK, EU Officials Push Back Against Brexit Bank Deal Report – Bloomberg

British and European officials are playing down reports that a Brexit deal has been reached for banks that would provide access to the single market after the UK leaves the bloc. The pound pared gains.

No Sleep Till Brexit: The City Scrambles to Deal With Quitting the EU – Bloomberg

Bankers, traders, and money managers are worried about London’s future as the financial gateway to Europe.

Europe Inches Closer to Own Version of No-Action Relief – (subscription)

You can’t always get what you want. Politics is the art of the possible. Be careful what you wish for. Financial firms could do worse than remember these three well-worn phrases as they nudge the European Union to give their top regulators a new power. 

EU Prop Trader Regime Could Capture Foreign Firms – (subscription)

There is growing unease among proprietary traders that new European Union prudential rules could end up being applied to their operations in the US and Asia, plus the UK after Brexit, potentially leaving them with much higher capital than their foreign rivals.

Esma Issues Clarification on Clearing, Trading Obligation – Global Investor (subscription)

NCAs are not required to take measures towards certain firms that will fall under the clearing obligation in December.

Goldman Sachs Sees a ‘Really Painful Transition’ Away From Libor – Bloomberg

Goldman Sachs sees a global migration awayy from the scandal-tainted London interbank offered rate improving the soundness of debt markets, but it’s likely to be an arduous process.

Fintechs Should Be Subject to Stress Tests, CFTC’s Behnam Says – Bloomberg Law

Financial technology companies should undergo stress testing to ensure that their products don’t misfire and cause harm to the broader financial system, a U.S. commodities regulator said.

Crypto News

Morgan Stanley: Hedge Funds and VCs Fueled a $6.4 Billion Gain in Crypto Assets in Under 2 Years – Business Insider

Hedge funds, venture capital firms and a smattering of private equity houses have helped the overall number of cryptocurrency funds increase by more than 11% in 2018 alone, Morgan Stanley estimates. 

Nasdaq Wants Crypto Market to Stamp Out Fraud – With Its Help – Bloomberg

The cryptocurrency industry is plagued by scandal. Stock exchange operator Nasdaq says it can solve the problem.

The Man Who Bet It All on Bitcoin, and Still Believes – The Wall Street Journal (subscription)

In 2017, bitcoin seemed almost unstoppable as investors and consumers poured money into the cryptocurrency. For one Dutch businessman, it was the year to make a radical change. 

Company News

NYSE-Owner ICE Beats Estimates on Strength in Data Services – Reuters

Intercontinental Exchange, the owner of the New York Stock Exchange, reported a better-than-expected quarterly profit on Wednesday, as a rise in its market data services unit eclipsed sluggish growth in its transaction and clearing business.

TP ICAP Says October Volatility Lifted Rates Trading, Data Units – Financial Times (subscription)

TP ICAP, the UK interdealer broker, said full-year results would be in line with its lowered market guidance as October’s market volatility boosted turnover at its interest rates trading and data units.

Cobalt Hires Rayner as Global Sales Head – Profit & Loss

Cobalt, the FX post-trade processing network based on shared infrastructure, has appointed Anoushka Rayner as global head of sales and business development.

BCS Global Hires Five Senior Analysts – FX Week (subscription)

BCS Global Markets has recruited five senior analysts for its research team as it expands the scope of its analytical coverage to central Asia and the Caucasus region.

LME Plans Code of Conduct for Traders after Playboy Party – Financial News (subscription)

The London Metal Exchange is to introduce a code of conduct for its members after one of the City’s oldest trading houses hosted a networking event at the Playboy Club during the LME’s annual gathering for commodities traders.

Eurex to Clear Repo for BrokerTec – Global Investor (subscription)

BrokerTec clients trading European repo will be able to clear transactions via Eurex by the end of 2018.

Refinitiv’s QA Direct Platform Commits to the Cloud – Inside Reference Data (subscription)

Refinitiv – formerly the Financial and Risk business of Thomson Reuters – is launching its quantitative analytics platform, QA Direct, on the cloud through Microsoft Azure.

Market Savvy

Sterling Heads for Second Best Week of 2018 on Brexit Hopes, BoE Signals – Reuters

Sterling gained on Friday, putting it on course for its second best week of 2018 on optimism for a Brexit deal and signals from the Bank of England that if the exit from the European Union is smooth more interest rate hikes could be on the way.

Dollar Softens on Trade Deal Hopes; US Jobs Data in Focus – Reuters

The dollar fell on Friday on signs US President Donald Trump is seeking to resolve a damaging trade war with China.

Euro Rebound Still on Cards But Conviction Starting to Waver: Reuters Poll – Reuters

Economic and political turbulence in the euro zone will keep the euro under pressure in coming months, but currency strategists in a Reuters poll still say it will rally next year once the U.S. dollar’s dominance fades.

The Spectre of Seven – Financial Times (subscription)

China’s currency is close to breaching an important level. Should we care?