Top Headlines

Pound Falls on Breakdown in Brexit Talks – Financial Times (subscription)

The pound dropped on uncertainty over Brexit talks as Theresa May fought to revive a deal to break a deadlock in EU divorce negotiations.

Five Brexit Questions for UK Investors and the Pound – Financial Times (subscription)

Sterling’s volatile swings so far this week – as prospects of a deal in the first round of the Brexit negotiations first rose and then abated – offers some pointers to how markets could react as the UK and EU pursue more substantive talks on trade in the coming months.

Dollar Stalls as Next Step in US Tax Reform Awaited, Antipodeans Advance – Reuters

The dollar dipped as investors waited to see how the next step of the US tax reform legislation proceeds rather than extend the rise made by the dollar at the start of the week following the US Senate’s approval of the tax bill.

Kuroda’s Ambiguity Leaves Traders Guessing BoJ Direction – Financial Times (subscription)

Neil Mellor of BNY Mellon doubts there would be an imminent change in policy, but that may not stop speculation.

Resigned to Not Getting Special Treatment, London’s Bankers Brace for Brexit – Wall Street Journal (subscription)

EU officials say financial services aren’t among their most pressing Brexit worries.

Investors Score Big on Trump-Related Trade in South Korea – Wall Street Journal (subscription)

Investors are piling into South Korea’s won, confident that the country won’t weaken its surging currency because it fears being labeled a foreign exchange manipulator by the US.

CBOE Beats CME to Bitcoin Futures Launch with December 10 Start – Reuters

Cboe Global Markets will launch its bitcoin futures contract on December 10, just over a week ahead of rival CME Group, as the exchange operator takes the next step toward launching an exchange-traded fund based on the digital currency.

Bitcoin: The Next Step – Profit & Loss (subscription)

A key difference between the different bitcoin offerings being touted is how they will clear and settle.

Regulatory News

Global Deal on Bank Capital Rules Likely: EU Official – Reuters

A deal on global bank capital rules is likely next week, a senior European Commission official said, though the compromise that will emerge will be tested for its impact on the EU’s economy.

SEC Chairman Clayton Says Agency Is Not Done in Addressing Uses of Bitcoin – Wall Street Journal (subscription)

The Securities and Exchange Commission has more to offer on how it views the uses of bitcoin, Chairman Jay Clayton said, though he stopped short of saying the commission planned to issue formal guidance on the subject.

France’s Market Regulator Calls Bitcoin a ‘Dangerous Illusion’ – Bloomberg

The chairman of France’s market regulator denounced bitcoin as a “dangerous illusion” and a tool for criminals, siding firmly against the cryptocurrency as its value climbed further past $11,000.

Israel Is Urged to Become a Global Hub for Digital-Currency Offerings – Bloomberg

Israel should look at the explosion of cryptocurrencies as an opportunity to develop an international financial center for so-called initial coin offerings, the head of the country’s securities market regulator said.

Democrat Cites Drafting Error in Proposed Capital Rule Amendment – Reuters

A Democratic US senator is backing away from a proposed legislative tweak that would have helped big banks lessen their capital burden, according to a statement provided to Reuters.

Leaving Dodd-Frank’s ‘Hotel California’ Not as Hard as You Think – American Banker

The Dodd-Frank Act included a provision to lock some of the biggest firms into the law’s enhanced supervisory regime even if they tried to leave. But that grasp may not be as strong as it used to be.

Company News

More Venues Report FX Volume Data – Profit & Loss

Three more trading venues have reported slightly increased FX average daily volume (ADV) for November.

Absa Bank Joins CLS as Settlement Member – Profit & Loss

Absa Bank has joined CLS Group as a settlement member.

Roughley Joins 360T – Profit & Loss

Profit & Loss understands that David Roughley has joined 360T in Sydney as a sales manager for Australia and New Zealand – he will report to Jamie Salamon, COO, of Asia for 360T.

Market Savvy

Philippine Peso, South Korean Won Weaken as Dollar Firms on Tax Reform Progress – Reuters

Most Asian currencies weakened with the dollar getting a lift from the US Senate’s approval of a tax overhaul plan at the weekend.

Erdogan Denies Capital Controls in Curbing Wealth Smuggling – Bloomberg

The lira was buoyed by his declared commitment to the free movement of capital and support for Turkish firms operating overseas.

Bitcoin Dips Below $11,000 After Setting Another Record High – Reuters

Bitcoin dipped back under $11,000, coming off a record high just shy of $11,800 it hit on Sunday after a surge from less than $1,000 at the start of the year.