Top Headlines

NY Fed Rejects Claims that Regulation is Damaging Market Liquidity – Profit & Loss In a speech delivered last week William Dudley, president and CEO of the Federal Reserve Bank of New York, refuted claims that tougher regulatory requirements for banks is leading to a decrease in liquidity in the financial markets.

Fed Odds Drop to 8% for October; El-Erian Says December Is 50-50 – Bloomberg The bond market shows traders see only an 8 percent chance the Federal Reserve will raise interest rates at its Oct. 27-28 meeting following weaker-than-expected employment growth.

Market Volatility Drives FX Revenue – FX Week (subscription) Macro-volatility is the driving force behind the increase, as it prompts clients to hedge Revenue from the G10 FX business at banks increased by more than two-thirds in the first half of this year.

Economists Bring Forward Forecasts for More BOJ Stimulus – Bloomberg Economists brought forward forecasts for when the Bank of Japan may next increase stimulus after economic data that pointed to the risk of the economy falling back into recession.

First Brokers Stand Trial over Libor – CNBC The first brokers to face prosecution in the global Libor investigation will go on trial this week in London.

Saudi Arabia Cuts Oil Prices Amid OPEC Price War – Wall Street Journal (subscription) Saudi Arabia on Sunday made deep reductions to the prices it charges for its oil, hard on the heels of cuts last month by rival producers in the Gulf.

Banks Face Erosion of Business Around Currency Fix – FT.Com (subscription) The dominant banks in currencies trading are facing an erosion of their business around key industry benchmarks to independent venues in the wake of the forex market rigging scandal.

Out With The Old, in With The New – FIX Global Trading    Roger McAvoy, 360T Trading Networks examines ongoing transparency initiatives in FX trading.



Regulatory News

FSB Said to Plan Loss-Absorbency Rules at Low End of Range – Bloomberg The Financial Stability Board, will phase in a loss-absorbency requirement for the world’s biggest banks starting from the low end of its proposed range in 2019 according to a source.

Full Harmonisation of Rules Unlikely, ASIC Official says – Risk.Net (subscription) The Australian Securities and Investments Commission is moving to be more in tune with international market standards, but Cathie Armour, an ASIC commissioner, says they may never reach full harmonisation. CFTC

Muscles its Way to New Regulatory Turf – Law360 The US Commodity Futures Trading Commission in recent weeks has used its enforcement arm to plow new turf for the agency,



Company News

EBS BrokerTec Acquires Molten Markets – Profit & Loss EBS BrokerTec is launching into the institutional FX space with the acquisition of Molten Markets, as first reported by Profit & Loss on August 20, broadening its range of services to the asset management and pension fund communities.

Hotspot and FastMatch Volumes Down in September – Profit & Loss Hotspot and FastMatch have both reported a month-on-month drop in average daily volume.

ICAP Volumes Slip Lower in September – Profit & Loss September average daily volume data from ICAP shows all markets falling lower on a year-on-year basis.

Exchanges See Uptick in September – Profit & Loss CME Group and Moscow Exchange (Moex) reported upswings in volumes levels during September, both of which released numbers today, October 2.

Orca SMT FX Trade Execution Interface Enters Beta Phase – Profit & Loss Orca SMT, the new FX pricing, execution and management interface designed for use by foreign exchange salespeople, has announced its beta launch.   I

CE Clear Singapore Receives Recognition under EMIR – On Track For November 17 Launch – Mondovisione Intercontinental Exchange (NYSE:ICE), the leading global network of exchanges and clearing houses, announced today that ICE Clear Singapore has been recognised as a third-country central counterparty (CCP) in accordance with the European Market Infrastructure Regulation (EMIR).



Market Savvy  

Morning MoneyBeat Europe: Stocks Jump as Fed Rate Increase Fades – Wall Street Journal (subscription) European stocks surged at the open Monday as investors took the weekend to digest weak U.S. jobs data, a disappointing number that sparked expectations that the Federal Reserve will have to delay raising interest rates into 2016.

Denmark: Pace of FX intervention slowed in September – Danmarks Nationalbank (DNB) has published September’s FX reserve and central bank balance sheet.

Soft jobs data supports Asia FX; won, rupiah top over 2-week highs – Reuters Emerging Asian currencies rose on Monday as disappointing U.S. jobs data dented expectations of the Federal Reserve’s interest rate hike within this year.



Press Releases

British Government to Sell $3 Billion Stake in Lloyds Banking Group – Gov.UK The British government said on Monday that it planned to sell a 2 billion pound, or $3 billion, stake in the Lloyds Banking Group to retail investors in the spring.



Industry Events