Top Headlines 

Participants “Feel the Pain” of Capital Requirements on FX: Traiana – Global Investor (subscription)

Nex Optimisation, Capitolis partner on FX novation service to help with Brexit and capital requirements.

The FX Global Code: Is It Enough? – Tabb Forum

Hundreds of financial institutions have publicly declared their support of the FX Global Code, and increasing levels of transparency are demonstrating that market participant behavior is improving. But we would be naïve to think that a set of principles alone will eliminate bad actors and bad behavior.

Currency ‘Cartel’ Traders on Trial for Chats That Cost Billions – Bloomberg

The three British currency traders who were part of an exclusive online chat group referred to by members as “the cartel” go on trial this week for alleged market manipulation that’s already cost global banks $14 billion in penalties.

Hedge Funds Retreat as Markets Advance – The Wall Street Journal (subscription)

Three hedge funds have closed in less than a week as investors question a once-highflying industry plagued by weak returns.

Mind Your Language: Surveillance Systems Tackle Conduct Risk – Waters (subscription)

While advanced voice analytics technologies have been around for years, banks have often used them as a blunt instrument, or a regulatory checkbox. Now they are increasingly seeing them as tools for managing conduct risk and employee protection.

End of the Line for Buy-Side OMS? – Markets Media

Buy-side order management systems may have reached an evolutionary dead end as trading automation and multi-asset trading continues to grow. 

Regulatory News

UK Regulation: Stors – The Never-Ending Story – Euromoney
The UK’s financial market regulator finds firms still struggling with suspicious transaction reports, but it could be bolder in its criticism.

European Banks Worry About Clearing in No-Deal Brexit – Financial Times (subscription)

European banks are growing fearful of losing access to clearing for critical derivatives markets such as Brent oil futures and commodities in a no-deal Brexit, putting pressure on regulators to work out a transition period.

Day One of a No-Deal Brexit: Swaps and Chaperones – (subscription)

Banks, trading platforms, repositories tee up EU entities – and dread the repapering crunch that would follow.

SA-CCR Proposal Imminent, Fed Adviser Says – (subscription)

The Federal Reserve is placing “a high degree of priority” on finalising its capital and liquidity standards for large banks – beginning with a proposal on the standardised approach to counterparty credit risk.

ESMA Lacks Data to Test Bond Market Concerns – The Desk

Regulators have acknowledged that bond market data is so sparse, even post-MiFID II, that they are unable to test execution quality concerns. 

Is EU Regulation of High Frequency Trading Stringent Enough? – LSE Business Review

The new transparency requirements aren’t enough to prevent the misuse of HFT trading practices. 

Crypto News

CFTC Faces High Hurdles in Virtual Currency Regulation – IntelAlley

The Technology Advisory Committee’s subcommittee on virtual currency gave the US Commodity Futures Trading Commission a problematic prescription during its first report to the regulator: Regulate the cryptocurrency and digital asset markets quickly and correctly because the clock is ticking.

Despite Regulatory Cold Water, the List of Crypto ETF Hopefuls Grows – The Block

US Regulators are cold to the idea of a bitcoin exchange-traded fund tied to the volatile market for digital assets, but that hasn’t stopped more and more firms from exploring a fund of their own.  

Crypto ICO Funding Dropped in September to Lowest in 17 Months – Bloomberg

The initial coin offering boom is slowing to a whimper. Startups raised less than $300 million in September, the smallest amount since May 2017, according to data compiled by Autonomous Research. 

Company News 

Law Joins CLS in APAC – Profit & Loss

CLS says that it has hired Margaret Law as head of client management APAC. She will be based in Hong Kong and report to Joe Ziccarelli, global head of sales.

Thomson Reuters F&R Closes on a Positive Note – Profit & Loss

In the last month of trading as Thomson Reuters, the firm’s FX platforms delivered a rise in activity in September.

BayernLP is First Landesbank to Commit to FX Code – FX Week (subscription)

Munich-based regional bank’s move pushes number of signed-up participants closer to 500 mark.

Gain Signs With Eventus for RegTech Solution – Profit & Loss

Gain Capital has deployed Eventus Systems’ cloud-based version of its Validus platform to manage the market surveillance programme for its futures operation. 

Market Savvy 

Sterling Weakens as Brexit Concerns Weigh – Reuters

The British pound drifted nearly half a percent lower on Tuesday on the back of a stronger dollar and as investors booked profits after last week’s rally on rising hopes of a breakthrough in Brexit negotiations. 

Euro Stuck Near Seven-Week Low on Italy Budget Woes – Reuters

The euro languished near a seven-week low on Tuesday as concerns about a row in the European Union over Italy’s budget persisted. 

China’s Yuan Regains Footing Amid Offshore Liquidity Squeeze – Reuters

China’s yuan firmed against the dollar on Tuesday after falling to seven-week lows the previous session, as a liquidity squeeze in the offshore yuan market in Hong Kong helped stabilize sentiment.

Pain Is Back On for Emerging Market Currencies – Bloomberg

Decent returns in September are getting crushed by the dollar and domestic ills.