Top Headlines

Judge Ticks Latest FX Benchmark Settlement Claim – Profit & Loss

Judge Lorna Schofield of the Southern District Court of New York has approved the proposed settlement that sees five banks pay $111 million for alleged FX benchmark manipulation.

Dollar Slips Against Yen as Korea Worries Persist – Reuters

The dollar slipped against the yen, pushing back towards last week’s 4½ month low on worries over North Korea’s nuclear ambitions and on comments from a Federal Reserve official about subdued US inflation.

US Dollar Has Embarked on a ‘Multi-Year Downtrend’: Nomura – Financial Times (subscription)

The slide in the buck in 2017 is just the start of a “multi-year” move lower, according to new analysis by Nomura.

Sterling Steadies After Biggest Jump in Two Months – Reuters

Sterling consolidated gains, a day after posting its biggest daily rise in nearly two months, as investors trimmed some bearish bets before a parliamentary debate over the government’s European Union repeal bill.

Standard Bank: ‘The Only Question’ Is by How Much the Pound Will Fall – Financial Times (subscription)

It’s been a good couple of weeks for the pound, as it rallied against the euro and held onto its gains. But not all are convinced it will last.

Can Mario Draghi Keep His Grip on the Euro? – Financial Times (subscription)

If currency continues to rise, analysts eye extension of ECB bond-buying.

Traders Lured by High-Yield ‘Sweet Spot’ in Emerging Markets – Bloomberg

Investor anxiety, as measured by one-month implied currency volatility, dropped to multi-month lows last month in Russia, South Africa and Brazil – countries with some of the most generous yields on their local government debt.

ING Closes ‘Trade of 2017’ Czech Crown Bet – Reuters

Dutch bank ING, which last year dubbed buying the Czech crown ‘the trade of 2017’, said it was closing its recommendation on the currency, which has risen less than expected since the ending of an exchange rate cap.

Asset Bubbles Appear to be Getting ‘More Bubbly’: BofA Merrill – Financial Times (subscription)

The massive gains for bitcoin this year are not your father’s bubble – it is far more dramatic – Bank of America Merrill Lynch said.

Five Markets Charts That Matter for Investors – Financial Times (subscription)

Bitcoin bubble, US company financial arbitrage, EM debt rally, European demographics.

Regulatory News

Day of the Mifids: What Happens on January 3? – Risk (subscription)

Continued ambiguities in the rules could hit European market liquidity at the start of 2018.

US SEC Chief Says Cyber Crime Risks Are Substantial, Systemic – Reuters

Regulators must do more to help mom-and-pop investors better understand the potential risks posed by cyber crime and new technologies used to commit fraud, US Securities and Exchange Commission Chairman Jay Clayton said.

Why the Supreme Court May Review the SEC’s In-House Judges – The New York Times

The claim that the Securities and Exchange Commission gets a big boost from bringing enforcement actions before its own administrative law judges has become a matter of lore, at least among the members of the securities defense bar.

Company News

CME, NEX Report August Volumes – Profit & Loss

Following the mixed news from other platforms to report last week, the pattern of varying fortunes in terms of average daily volume (ADV) has continued with Nex Markets’ EBS reporting a month-on-month and year-on-year increase, but CME Group reporting a drop from July 2017 but a healthy rise from August 2016.

‘Let’s Start Doing That’: Deutsche Bank Chief Calls for End to ECB Stimulus – Financial Times (subscription)

Deutsche Bank chief executive John Cryan has called on the ECB to end the ultra-low interest rate policy that has battered banks’ profitability in recent years.

Banks Look to Step Up Employee Surveillance – Bloomberg

Banks already using algorithms to monitor traders are looking to expand surveillance to cover more employees in the wake of the Wells Fargo scandal.

Market Savvy

Canadian Dollar Strengthens Ahead of Rates Decision – Financial Times (subscription)

The loonie’s on fire ahead of Wednesday’s interest-rates decision from Canada’s central bank.

Uzbek Currency Drops 48% After Central Bank Allows Float – Financial Times (subscription)

Uzbekistan’s som lost almost half of its value in a single day, after the government announced it would remove its peg against the dollar in an attempt to crack down on black market trade in the currency.

CEE Markets – Currencies Drop on Output Data as Poland Seen Holding Rates – Reuters

Central European currencies weakened after Hungary and the Czech Republic reported much weaker than expected industrial output figures for July.