Top Headlines

Mexico Peso Reaches Six-Week High After US Presidential Debate – Bloomberg

Mexico’s peso reached a six-week high in a signal that Hillary Clinton held on to her advantage over Donald Trump in the final US presidential debate.

Euro Pinned Down Near Three-Month Lows Before ECB Meeting – Reuters

The euro was trading near a three-month low against the dollar before a European Central Bank meeting, with the focus on whether President Mario Draghi will indicate that the bank is poised to taper its bond purchase programme.

Dollar Slips as Investors Question Interest-Rate Path – Wall Street Journal (subscription)

The so-called beige book offered investors little insight on the Fed’s plan for interest rates.

ICE’s Sprecher: ‘Mifid II is a Terrible Piece of Legislation’ – Financial News (subscription)

Jeff Sprecher, chairman and chief executive of Intercontinental Exchange, has slammed Mifid II as “a terrible piece of legislation that imposes tremendous costs on the industry”.

China War on Underground Banks Uncovers $148 Billion in Illegal Trades – Reuters

The State Administration of Foreign Exchange will step up investigations into capital outflows and intensify a crackdown on underground banks to foster healthy development of the country’s foreign exchange market.

Emir Review Could Enable EU Clearing Land Grab – Risk (subscription)

Experts say 2015 ECJ ruling may not protect London euro clearing if the UK leaves the European Union.

Keeping Euro-Clearing in London Probably Not a Priority in Brexit Talks – Reuters

The future of London’s financial clearing business is a significant consideration in Britain’s negotiations on leaving the European Union, but is probably not a priority for government, city minister Simon Kirby said.

Yuan Slides Closer to Crisis Peg as Watchers Predict Bumpy Ride – Bloomberg

The yuan may be in for a tough few months.

GMEX Restructures and Spins-Off Exchange Business – Finance Magnates

GMEX, a provider of multi-asset exchange and post trade technology, has announced the restructuring of the Group in a move that separates its exchange and technology businesses, according to a company statement.

The Real Reason Why FX Traders Are Struggling – Profit & Loss

Participants are reluctant to pre-empt events – even if they are likely to be as predicted.

SEB on Krona Weakness: Blame the Robots – Financial Times (subscription)

Everybody seems to think the Swedish krona is has fallen too far. And yet it keeps on falling.

Brexit Fires Up Cross-Currency Futures Market – Economic Times

Britain’s decision to exit the European Union has shaken up India’s moribund exchange traded cross-currency futures market.

Regulatory News

Morgan Stanley, Citi Vying to Clear Yuan Trades in US – Reuters

Morgan Stanley and Citigroup are among those vying to be the designated US bank clearing yuan trades in the United States alongside Bank of China, China’s fourth-biggest bank by assets, a senior BoC executive said.

Futures Brokerage Squeeze Distorted by CFTC Stats – FOW (subscription)

The scale of FCM retrenchment in the US is exaggerated by commonly cited CFTC figures, research by FOW has found.

Buy-Side Deemed Frontrunners in Regulatory Data Management – The Trade

Asset management firms are currently leading the way in strategic regulatory data management, according to a report by Thomson Reuters.

Company News

World’s Fourth-Biggest Currency Trader Sees Euro Decline Ahead – Bloomberg

Deutsche Bank is sticking with its weaker euro call.

Duco Streamlines Fee Processes for CME Members – Profit & Loss

Duco Technologies will offer its data control and reconciliation services to CME Group members starting January 2017, the two firms announced.

CFH Systems to Acquire JV Partner in China – Profit & Loss

CFH Systems, which produces online trading services for financial institutions primarily for FX and CFDs, is set to acquire Capital Market Automation Provider’s 49% stake in its organisation.

Market Savvy

Brazil’s Real Firms Before Central Bank Rate Cut, Mexican Peso Up – Reuters

Brazil’s real firmed before the central bank delivered its first rate cut in four years to support a struggling economy, while Mexico’s peso gained ahead of the final debate in the US presidential election campaign.

Canadian Markets Boomerang as Poloz Reveals Stimulus Discussion – Bloomberg

The Canadian dollar and short-term bond yields slid, reversing course after Bank of Canada Governor Stephen Poloz said the central bank “actively” discussed the possibility of adding more stimulus into the economy.

Dairy Auction Sees NZD Return to Strength – Exchange Rates

Despite persistent worries over the UK’s future outside the EU Pound Sterling has been able to regain some ground against the relatively bullish New Zealand Dollar.

Ringgit Over One-Week High on Oil; Malaysia Budget Eyed – Reuters

Malaysia’s ringgit hit its strongest level in more than one week thanks to higher oil prices, while investors awaited unveiling of the country’s 2017 budget on Friday.