Jay Powell Sees Little Reason for December Rate Cut in Rebuff to Trump – Financial TimesFederal Reserve chairman Jay Powell told US lawmakers on Wednesday that he sees little reason to lower interest rates in December, despite coming under renewed pressure from President Donald Trump to loosen monetary policy.

Trump Prioritized Biden Investigation Over Ukraine Aid, Witness Tells Impeachment Probe – Reuters

Senior Democratic and Republican lawmakers presented dueling narratives on Wednesday as a U.S. congressional impeachment inquiry that threatens Donald Trump’s tumultuous presidency entered a crucial new phase with the first televised public hearing.

Russia to Cut Dollar Share of its $125bn Sovereign Wealth Fund – Financial Times

Russia wants to reduce the dollar’s share of its $125bn sovereign wealth fund as part of a Kremlin plan to “de-dollarise” the economy and shift towards the euro and the renminbi.

Protesters Blockade Universities, Stockpile Makeshift Weapons as Chaos Grips Hong Kong – Reuters

Anti-government protesters dug in at several university campuses across Hong Kong on Wednesday, setting the stage for further confrontations as police said violence in the Chinese-ruled city had reached a “very dangerous and even deadly level”.

Is it Time to Change the Credit Model in FX? – Profit & Loss

Rick Schonberg, global head of ForexClear product development at LCH, is unequivocal in expressing his view that the current credit model in the FX industry is due for a change.

The CTA Conundrum – Profit & Loss

Amidst a period of poor performance by CTAs, speakers at Forex Network Chicago discussed how these firms should be adapting to a period of sustained low volatility.

Regulatory News

BIS Opens Innovation Hub in Singapore – Profit & Loss

As flagged in a release earlier this week, the Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS) have officially launched the BIS Innovation Hub Centre in Singapore, marking what the BIS says is its first expansion of its global footprint in 17 years.

ECB Appoints Imène Rahmouni-Rousseau as Director General Market Operations

The Executive Board of the European Central Bank (ECB) has appointed ImèneRahmouni-Rousseau to the position of Director General Market Operations (DG-M). Ms Rahmouni-Rousseau will replace Ulrich Bindseil, who took up his new role as Director General Market Infrastructure and Payments on 1 November 2019.

Brexit’s $78 Trillion Derivatives Spat Needs Fix Now, Banks Say – Bloomberg

The world’s biggest banks pressed policy makers to pass an urgent Brexit fix to ensure European traders’ access to London derivatives clearinghouses and avoid rupturing 61 trillion pounds ($78 trillion) in contracts.

EU Prepares Tweak to Mifid Market Rules After Industry Backlash – Financial Times

Brussels is preparing to retune some of its Mifid II markets rules from next year, less than three years after implementation, following a wave of criticism from investors and regulators over the effectiveness of the far-reaching legislation.

Crypto News

HSBC, SGX to Investigate if DLT Offers Efficiency Boost for Bond Markets – CoinDesk

Can digitalizing bonds with distributed ledger technology (DLT) bring benefits to market participants?

PBOC Wants ‘Controllable Anonymity’ in China’s Digital Currency – Bloomberg

China wants to balance functionality with concerns about anonymity as it works toward launching a digital version of the yuan, according to an official from the People’s Bank of China.

Winklevoss Capital, Coinbase Back $1.8 Million Round for Bitski Crypto Wallet – CoinDesk

A startup making it easier for developers to put crypto wallets in their applications is announcing a seed round from the likes of Galaxy Digital, Winklevoss Capital and Coinbase Ventures.

Bitstamp Expands into Asia with New Hire – The Block

Cryptocurrency exchange Bitstamp has announced its expansion into the Asia-Pacific (APAC) region. To drive its expansion efforts, Bitstamp has hired Andrew Leelarthaepin, who has held roles at JPMorgan Cash and Saxo Bank. 

Crypto Research Firm Messari Raises $4m Backed by Coinbase Ventures, Blockchain Capital, Uncork Capital, Others – The Block

Cryptocurrency research startup Messari announced today it has closed a $4 million funding round, led by Uncork Capital with participation from Blockchain Capital, CoinFund, Danhua Capital, Fenbushi Capital, Coinbase Ventures, and former Coinbase CTO Balaji Srinivasan. 

Company News

Barrow to Head Refinitiv’s Benchmark, Index Business – Profit & Loss

Refinitiv has appointed Shirley Barrow as global head of its benchmarks and index business. 

Citi Launches New Calculation Tool for Uncleared Margin Rules – The Trade

Citi has launched a new regulatory calculation service to aid buy-side firms in their collateral requirements under the uncleared margin rules (UMR).

Morgan Stanley’s Swaps Clearing Unit Boosts Client Margin by $4.8bn – Risk

Required client margin held by Morgan Stanley’s swaps clearing unit jumped up by $4.8 billion (28%) in the third quarter – the most of the 17 reporting US futures commission merchants (FCMs).

TradAir Hires Sears – Profit & Loss

TradAir has appointed Russell Sears as chief revenue officer. He joins the trading front end solution provider having most recently worked in the FX industry at State Street, where he had a 13 year career.

RenTech’s Billion-Dollar Tax Cloud Darkens After IRS Ruling – Bloomberg

A little-noticed decision by the Internal Revenue Service’s appeals unit may spell trouble for legendary investor Jim Simons, who’s embroiled in a multibillion-dollar tax dispute with the agency.

Market Savvy

Brexit Uncertainty Not Hampering RMB Trading – Profit & Loss

Brexit uncertainty hasn’t stopped RMB trading activity in the UK reaching record highs, according to a new report published by the City of London Corporation.

U.S. Inflation Firms on Rising Healthcare, Energy Costs – Reuters

U.S. consumer prices jumped by the most in seven months in October, which together with abating fears of a recession, support the Federal Reserve’s signal for no further interest rate cuts in the near term.

Latam FX Hits 1-1/2 Month Low on Trade Worries; Chile’s Peso Drops 2% – Reuters

Latin American currencies slipped for the eighth straight session on Wednesday as lack of clarity on the U.S.-China trade deal sapped risk appetite, while Chile’s peso remained at all-time lows as anti-government protests showed no signs of subsiding.

Hong Kong Money Markets Show Investor Calm is Cracking – Bloomberg

Cracks are starting to emerge in Hong Kong’s money markets, as traders speculate the local dollar’s resilience to increasingly violent protests won’t last.