Top Headlines

No Room for Mistakes as World Economic Waters Turn Choppy – Bloomberg For years, the global economy surfed a flood of easy money from central banks and a surge in Chinese demand for commodities. Now, policy makers are trying to anticipate what’s exposed when the tide goes out.

China’s Yuan Seen to Play a Bigger Role as Funding Currency – Economic Times China’s yuan is likely to be increasingly used as a financing currency for global borrowers in addition to its current role mainly as an investment tool if Beijing cuts interest rates further as expected to support the cooling economy.

Excessive Reliance on Weak FX Rates to be Avoided: IMF’s Lagarde – FXStreet The International Monetary Fund (IMF) chief Lagarde was on the wires today stating that economies should avoid over reliance on weak FX rates.

China Belongs in the TPP – Bloomberg Some are hailing the 12-nation Trans-Pacific Partnership free-trade agreement as a win for American leadership and a defeat for China.

Fed’s Rate Delay Spurred by Worry Over Low Inflation, Minutes Show – Wall Street Journal (subscription) Inflation has been below the Fed’s 2% target for more than three years.

Buy Side Held Back by Confusion on Cross-Trading Swaps – Risk.Net (subscription) Asset managers could realise significant cost savings by internalising some of their swaps flow, but CFTC rules prevent them from doing so.

Critics Push Back at Clinton Tax Proposal Targeting High-Frequency Traders – Wall Street Journal (subscription) Some say proposed tax on excessive order cancellations could increase costs, cause market problems.



Regulatory News

FSB Calls for Niche FX Benchmarks Reform – Euromoney The Financial Stability Board (FSB) has issued a progress report for the reform of the FX benchmarks business, expressing satisfaction with the overall progress the industry has made.

Czech Central Bank Serious in Keeping FX Policy for as Long as Needed – Vice-Governor – Reuters The Czech central bank can keep its weak crown policy for as long as necessary and has shown it is serious about holding that commitment until at least the second half of 2016 and maybe longer, Vice-Governor Mojmir Hampl said on Thursday.

Moody’s: MiFID II Proposals are Credit Negative for Bond Managers – Pension & Investments New transparency rules affecting European capital markets risk reducing market liquidity, the capacity of investment funds and will raise compliance costs for money manager.



Company News

Nasdaq to Debut Exchange-Like Surveillance for Dark Pools – eFinancial News (subscription) Nasdaq has been actively developing a dark-pool surveillance tool, which will work with its cross-asset Smarts trade monitoring platform, since the beginning of the year.

Bill Gross Sues Pimco for Breach of Contract – eFinancialNews (subscription) Bill Gross sued his former employer, Pimco, and its parent company on October 8 for breach of contract, alleging that managing directors plotted to drive the famed bond investor out of the firm.

Standard Chartered Said to Cut About 1,000 Senior Employees – Bloomberg Standard Chartered Plc Chief Executive Officer Bill Winters is planning to cut about a quarter of senior staff, resulting in about 1,000 job cuts worldwide, to help reverse a two-year profit slide at the emerging markets-focused lender.



Market Savvy  

Global Stocks Eye Biggest Rally in Four Years on Fed Relief – Reuters World stocks rose on Friday, putting them on course for their biggest weekly rise in four years after minutes of the Federal Reserve’s last policy meeting showed the U.S. central bank is in no rush to raise interest rates.

Credit Suisse Shorts Euro in Opaque, Low-Volatility World – Bloomberg Credit Suisse Group AG is running a “small position” to profit from a drop in the euro against the dollar as it reduces investments that are vulnerable to sudden shifts in currency levels.

Time to Reload FX Volatility – Societe Generale The FX vol fall in September could suggest a return to a low regime. In our view, this should not happen and this is instead an opportunity to reload longs.



Press Releases

AFME’s Lewis: Europe Needs Diverse Funding Options for SMEs – AFME Improving funding for small and midsize businesses is one of the key goals in the European Commission’s plan for developing a Capital Markets Union, AFME CEO Simon Lewis writes.



Industry Events