Top Headlines

LCH Targets Non-Cleared Market with Radical New Platform – Risk (subscription)

SwapAgent will act as calculation agent for bilateral interest rate and forex derivatives trades.

Currency Traders Flee to Havens as US Election Roils Markets – Bloomberg

The greenback weakened to a three-week low against the euro after an ABC News/Washington Post tracking poll placed Republican nominee Donald Trump one percentage point ahead of Democratic rival Hillary Clinton a week before the US presidential election. 

Mexico Peso Seen Plunging 10 Per Cent if Trump Wins US Election – Reuters

Mexico’s peso could plunge more than 10 percent to a record low against the dollar in a matter of weeks if Donald Trump wins the US presidential election on November 8, according to a Reuters poll of currency strategists. 

LSE CEO Says Loss of London Clearing May Cost $77 Billion – Bloomberg

Stripping euro clearing from London as a result of the UK’s Brexit vote could cost banks $77 billion in additional collateral, almost doubling what they post now, said London Stock Exchange Group CEO Xavier Rolet.

Carney Bounce Proves Short-Lived for Sterling – Reuters

Sterling was back under pressure having briefly been boosted by news Mark Carney would stay on until 2019 at the helm of the Bank of England, which eased concerns for now about perceived attacks on the Bank’s independence.

Brexit May Undermine Sterling’s Place in World FX Reserves – Reuters

While changes in hard cash reserves at global central banks tend to be glacial, the hit to sterling from a potential ‘hard’ UK exit from Europe’s single market after more than 40 years could eventually undermine the pound’s position in their coffers.

Bats Completes Javelin SEF Acquisition – Profit & Loss

Bats Global Markets completed its acquisition of Javelin SEF, a swap execution facility.

A Referendum on Clearing – Risk (subscription)

Brexit margin calls show swaps CCPs are relying on funding strength of a handful of banks.

Emerging Markets Look Ready for Janet Yellen – Bloomberg

Cushioned by a rally in stocks, currencies and commodities, a brightening growth outlook and fatter foreign-exchange reserves, governments from Jakarta to Warsaw have sandbagged defenses in anticipation the Federal Reserve chair will raise interest rates by year-end.

Yuan Slides 1.3 Per Cent in First Month as IMF Reserve Currency – South China Morning Post

Strong dollar amid expectations of a Fed rate hike in December, and the ECB’s decision to maintain loose monetary policies seen as main factors.

Yuan Gains for Third Day as US Election Jitters Weaken Dollar – Bloomberg

China’s yuan headed for its first three-day advance in more than a month as the dollar weakened amid growing market volatility ahead of next week’s US presidential election. 

Analysts Say Softer Yuan Not a Sure Thing –

Despite a looming rise in US interest rates and recent exchange rate volatility, many analysts believe that persistent depreciation of the Chinese currency is not supported by the underlying fundamentals.

China’s Currency Needs Reform at Home Before Gaining More Traction Internationally – EconoTimes

Businesses need the government’s shield to establish international confidence in the currency and the Chinese economy.

Rapid Currency Slide Chokes Business in Egypt – Reuters

Business is grinding to a near-halt in Egypt as companies struggle to keep pace with a rapid slide in the black market value of the pound.

Venezuela’s Currency is Collapsing on the Black Market Again – Bloomberg

Venezuela’s currency is so weak, shopkeepers have taken to weighing it.

Ones to Watch: The Rise of Online-Only Money – Financial Times (subscription)

Although bitcoin remains the biggest, other digital currencies offer extra benefits.

Regulatory News

The Government Can’t Be Trusted to Collect Source Code and Other Private Property – Business Insider

A major concern is that the US government can’t be trusted to protect such sensitive technological data.

MiFID II: Best Execution May See Heads Roll – Waters Technology (subscription)

The impending implementation of MiFID II in January 2018 includes a new set of best execution rules that will extend to participants including trading venue operators and asset managers.

Central Banks Explore Blockchain to Create Digital Currencies – Financial Times (subscription)

Trailblazers including UK, Russia, China seek to cash in on bitcoin breakthrough.

Company News

LMAX Exchange Links Up with IPC’s FX Hub – Finance Magnates

LMAX Exchange will aim to provide its clients with a new range of connectivity options.

DRW, Goldman, Wells Fargo Back Swaps Regtech Firm – Risk (subscription)

Droit gets $16m capital boost to support growth of cross-border compliance service.

BSE Revises Transaction Charges for Currency Derivatives – DNA India

The stock exchange has revised the transaction charges on trades done in the currency futures and options contracts.

Market Savvy

Cut-Throat US Presidential Race Hits Asia FX; Won Near Four-Month Low – Reuters

Most emerging Asian currencies lost ground as global investors shunned riskier assets with the US presidential election race tightening just days ahead of the November 8 vote.

Peso, Real Lead Declines in Emerging Currencies After Trump Poll – Bloomberg

Mexico’s peso and Brazil’s real led emerging-market currencies lower after a poll showed Donald Trump edging ahead in the presidential race a week before the vote.

CAD Strengthens as Oil Rebounds, Domestic Economy Expands – Reuters

The Canadian dollar strengthened against its US counterpart as oil prices rebounded and domestic data showed the economy expanded for a third straight month.

Rupee Shines Against Weak Dollar, Fed Outcome Looms – Economic Times

The rupee made up further ground against the American currency, appreciating eight paise to end at 66.71 on continuous dollar unwinding from exporters and banks.