Top Headlines 

No Happy New Year in China as Currency, Liquidity Fears Loom – Bloomberg

The first day of 2017 is when an annual $50,000 quota to convert the yuan into foreign exchange resets, stoking concern there will be a rush to sell the local currency. 

China Regulator Busts Illegal FX Transactions Worth $2.7 Billion in Shanghai – Reuters

China’s foreign exchange regulator said it busted illegal transactions totalling $2.7 billion in Shanghai in cooperation with the police in 2016 and suspended three unnamed banks involved from selling foreign currency.

Dollar Edges Higher Against Yen on Strong US Indicators – Reuters

The dollar inched up against the yen after upbeat US economic data reinforced expectations for economic growth under Donald Trump’s Administration and more rate hikes by US Federal Reserve next year.

LSE Set to Sell French Clearing Arm to Euronext – Financial Times (subscription)

The London Stock Exchange Group is expected to announce the sale of its French clearing arm to rival Euronext within days in a cash deal worth about €510m.

Won and Taiwan Dollar Touch Fresh Multi-Month Lows – Reuters

The South Korean won and Taiwan dollar set fresh multi-month lows, after strong US economic data reinforced expectations that the Federal Reserve would be more hawkish in 2017.

Malaysia’s Onshore FX Market Records Higher Daily Average Volume in December – New Straits Times

The liquidity on the onshore foreign exchange market recorded a higher daily average volume of US$9 billion (US$1 = RM4.48) across all FX transactions this month, comparable to the average of US$8 billion from January to November, said Bank Negara Malaysia’s Financial Markets Committee.

Forces Align for a Stronger dollar in 2017 – Gulf News

A possible three rate hikes next year may cause a further sell-off in emerging market currencies.

Regulatory News

2017 Could Be the Year of US Domination of Institutional FX and Equities Dark Pools as MiFID Rules Take Dislike to Anonymity – Finance Feeds

2017 may well be the year in which North American institutional dark pools flourish, and in which MiFID’s restrictions on European soil and failure by European banks to operate according to US rulings may decimate European dark liquidity.

Top Iranian Economic Officials, MPs Meet to Address Forex Swings – Financial Tribune

The Majlis Economic Commission is to hold a meeting with Economy Minister Ali Tayyebnia and Central Bank of Iran Governor Valiollah Seif to discuss the recent upheavals in the Iranian forex market, which have seen the US dollar gain considerably against the rial, announced the head of the commission. 

Whether a Broker is Any Good or Not Has Nothing to Do with the Regulators – Finance Feeds

It is time for customers to look at firms on a meritocratic basis and not just who is regulating them.

Company News

Egger Leaves Citadel; Salimi Joins – Profit & Loss

Shawn Egger, co-head of FX market making sales at Citadel Securities in New York, has left the firm, sources say.

Machine Learning and Artificial Intelligence to Get Massive VC Boost – FX Automation Generation Nearing? – Finance Feeds

Pitango is a specialist in financing very successful FX industry ventures.

Market Savvy

Aussie, Kiwi Recover as Commodities Gain – Reuters

The Australian and New Zealand dollars both recovered against their US counterpart, helped by a broadly robust tone to stock and commodity markets heading into the final trading days of 2016.

Rupee Weakens Against US Dollar – Live Mint

The Indian rupee weakened for the second consecutive session and hit over a three-week low against the US dollar on consistent selling by foreign institutional investors in the local equity and debt markets.

Currencies Ease on Dollar, Romanian Politics – Reuters

Central European currencies eased against the euro, tracking a strengthening of the dollar, while investors watched Romania where President Klaus Iohannis rejected the Social Democrats’ prime minister nominee after the December 11 election.