Top Headlines

MiFID Shake-Up Gets Real as Wary Traders See Volumes Dry Up – Bloomberg

Trading volumes slumped ahead of the changes, according to two brokers with knowledge of the matter, with client business at one major brokerage in Europe almost non-existent as the rules were poised to take effect.

US Dollar Perks Up, With Euro Under Pressure – Financial Times (subscription)

The dollar rebounded from recent lows as the euro fell, but investors warned that political uncertainty and opportunities elsewhere in the world may leave the buck under pressure as this year gets underway.

US Asset Investment Surge Raises Dollar Worries – Financial Times (subscription)

Greenback weakness would have far-reaching consequences for financial assets in 2018.

British Pound Holds Near Three-Month Highs After Construction Report – Reuters

Sterling was flat but still holding near a three-month high of $1.36, after a survey showed that growth in Britain’s construction sector slowed last month. 

Too Much? BAML Casts Doubt on Euro Rally, Eyes Drop to $1.10 – Financial Times (subscription)

A rare voice of caution is coming from Bank of America Merrill Lynch, which is advising clients to brace for a 10-cent fall to $1.10 this quarter.

How will Brexit Affect the City? Don’t Ask the Government – Financial News

The government’s much-vaunted Brexit ‘impact assessments’ are embarrassingly short of detail on the impact on financial services.

Ex-UBS Trader Says Bank ‘Mandated’ Conduct That Led to Libor Ban – Bloomberg

FCA proposing to ban Hussein over Libor-related allegations.

CLS: Politics and Technology Will be Main Drivers in 2018 – FX Week (subscription)

Distributed ledger technologies will be used increasingly while cryptocurrencies gain ground.

Regulatory News

Asian Administrators in Denial on EU Benchmarks Regulation – Risk (subscription)

Non-EU benchmarks have until 2020 to comply, but swaps contracts may need to change immediately.

Congress to Tackle Dodd-Frank Rollback, Fannie-Freddie Overhaul – Wall Street Journal (subscription)

Senate bill on relief for regional banks expected to take precedence over House’s Financial Choice Act.

New York Fed Takes Names in Search for Next Chief – Bloomberg

Search committee and search firms have sought suggestions.

Company News

LMAX Global Launched as Group Prepares for MiFID II – Profit & Loss

LMAX Exchange Group has completed the transition of its MTF and broker businesses into two distinct FCA regulated entities to meet the regulatory changes under MiFID II.

Celer and Hotspot Partner – Profit & Loss

Celer Technologies has partnered with Cboe’s Hotspot FX to provide a GUI for clients wishing to trade on the platform’s streaming outright forwards and NDFs.

Speculators Raised Net Short Bitcoin Positions in December 26 Week: CFTC – Reuters

Speculators raised net short position on bitcoin futures traded on Cboe Global Markets last week amid a selloff sparked by experts’ warnings of a bubble, according to data from the Commodity Futures Trading Commission.

Euronext Completes LCH Share Swap – FOW (subscription)

European exchange group has a “pre-emptive right” to acquire LCH if it comes up for sale.

Market Savvy

Bitcoin and Its Kin Start New Year with a Bang – Wall Street Journal (subscription)

Most large cryptocurrencies rose in value after it was revealed that high-profile investor Peter Thiel invested in Bitcoin.

Rand’s on a High as Commodities, Politics and Greenback Team Up – Bloomberg

The rand touched its strongest level in more than two years on December 28 and remained near that level on Tuesday.

Asia’s Top-Performing Currency Is Still Raring to Go in 2018 – Bloomberg

The threat of war may not be out of the picture but Asia’s top-performing currency is still seen as raring to go in 2018.