PRA Fines Citigroup’s UK Operations £44 Million for Failings in Their Regulatory Reporting Governance and Controls – Bank of England
The PRA has imposed a combined financial penalty on Citigroup Global Markets Limited (CGML), Citibank N.A. London branch (CBNA London) and Citibank Europe Plc UK branch (CEP UK) (together, Citi) of £43.9 million for failings in relation to their internal controls and governance arrangements underpinning compliance with PRA regulatory reporting requirements. Between 19 June 2014 and 31 December 2018, or parts thereof, the firms’ UK regulatory reporting framework was not designed, implemented or operating effectively. This led to them failing to submit complete and accurate regulatory returns to the PRA.
BIS: How Did We Get to $6.6 Trillion? – Profit & Loss
The Bank for International Settlements’ Triennial Survey of FX Turnover sent the market’s activity benchmark to a new high, but what drove the growth and what does it mean for the industry?
China Plans to Relax FX Derivatives Rules – FOW
China’s State Administration of Foreign Exchange proposed methods for non-Chinese firms to trade FX derivatives.
Are Financial Markets Headed for a Year-End Cash Crunch? – Financial Times
When repo market borrowing costs spiked in September, it was the result of long-term trends that the Federal Reserve has been working to tame ever since.
US, China, Hold Phone Call on Core Concerns Over Phase One Deal – South China Morning Post
The two sides agree to continue communication about an agreement, Beijing says. Call suggests China is keeping trade negotiations separate from other disputes with Washington.
China Sets Up Hong Kong Crisis Centre in Mainland, Considers Replacing Chief Liaison – Reuters
Tightening control over efforts to manage the upheaval in Hong Kong, the Chinese leadership has set up a crisis command centre on the mainland side of the border and is considering replacing its official liaison to the restive semi-autonomous city, people familiar with the matter said.
- Humiliated at Polls, Hong Kong’s Lam Acknowledges Discontent with Government – Reuters
- Beijing Plays Down Hong Kong Election Results, Blaming Foreign Interference – South China Morning Post
China Ready to Turn its Attention to Europe in 2020, as US Trade Deal Gets Closer – South China Morning Post
After a year of intense focus on its relations with Washington, Beijing is preparing for a renewal of its ties with the EU, a series of engagements are planned with Brussels next year, starting with a bilateral summit in April.
Fed’s Powell: Monetary Policy Well Positioned to Support Strong Labour Market – Reuters
Monetary policy is “well positioned” to support the strong labour market, which is just now starting to benefit workers on the margins, Federal Reserve Chair Jerome Powell said.
Japan Urged to Review Inflation Target and Shift Cap on Bond Yields – Financial Times
The Bank of Japan should shake up monetary policy, moving its zero per cent cap on yields from 10-year bonds to a shorter maturity and reviewing its inflation target, the IMF has advised the world’s fourth-largest economy.
Sharp September Drop in Trade Dashes World Recovery Hopes – Financial Times
World trade contracted sharply in September, dashing hopes that the global downturn that has been weighing on exporters had bottomed out.
Conservatives See Lead Over Labour Narrow to Seven Points: ICM Poll – Reuters
British Prime Minister Boris Johnson’s Conservative Party saw its lead over the opposition Labour Party narrow during the last week, an opinion poll by ICM for Reuters showed on Monday, ahead of a Dec. 12 election.
CFTC Report Shows Uptick in Enforcement Activity – Profit & Loss
The total monetary relief awarded in Commodity Futures Trading Commission enforcement actions for the 2019 fiscal year was $1.32 billion, up 39% compared to 2018.
Cboe Wants to Install a Speed Bump — Wall Street Hates the Idea – Financial News
Cboe says its proposed order delay is designed to help smaller traders keep pace with deep-pocketed giants that get market data via superfast microwave links.
ASIC Examines ‘Trading’ at Star Hedge Fund Regal – Australian Financial Review
The corporate regulator is examining one of Australia’s top hedge funds, Regal Funds Management, enquiring about its trading “in certain securities” and obtaining documents from its Sydney office.
US Securities Regulator Proposes New Rules on Use of Derivatives in Exchange Traded Funds – Reuters
The US securities regulator proposed new regulations for the use of derivatives by investment funds to introduce some safeguards for more risky products and increase competition.
First All-RFR Cross-Currency Swap Traded – Risk
Goldman Sachs and Morgan Stanley strike landmark €STR v SOFR trade.
NFA Appoints OTC Derivatives Head – Profit & Loss
The board of directors of the US National Futures Association has approved the appointment of Michael Otten as vice president, OTC Derivatives.
Bitcoin Matches Record Losing Run in Fall to Six-Month Low – Bloomberg
Bitcoin sank to the lowest level in six months, extending this month’s slide on concerns about a crackdown on cryptocurrency operations by China.
- Bitcoin Drops Below $7,000 as China Euphoria Fades – Wall Street Journal
- Crypto Market’s Overreaction to Xi’s Blockchain Remark Prompts Tougher Crackdown – Coin Desk
What is China’s Digital Currency Plan? – Financial Times
China is aiming to be the first country in the world to launch a digital currency, after five years of research by a team in its central bank.
Nomura Wins Jersey Licence for Crypto Custody Business – Financial News
The investment bank has partnered with two cryptocurrency companies to build a custody tool for institutions.
New Report Turns Spotlight on Crypto Asset Market – Hedge Week
Crypto market activity slowed significantly during the third-quarter following the summer bull run in crypto asses, but it’s settled at levels notably higher than the previous 12 months, according to a new report.
Fed Officials Close to Filling Two Top Markets Jobs – Wall Street Journal
Top Federal Reserve officials are in the final stages of a search to fill two top staff jobs overseeing its financial markets operations, according to people familiar with the matter.
360T Begins Offering Streaming NDFs – Profit & Loss
360T has announced the completion of the first trade in streaming NDFs.
Westpac CEO, Chairman to Step Down – Australian Financial Review
Westpac chief executive Brian Hartzer will step down within a week to be replaced by chief financial officer Peter King as acting CEO while long-standing chairman Lindsay Maxsted will bring forward his retirement to early 2020 as the bank seeks to stop the reputational damage from the AUSTRAC scandal.
Wink to Join Tradition – Profit & Loss
Angus Wink is set to join Tradition in a London-based senior management role in early 2020.
Boomtime Back as Dealmaking Hits $70bn in a Day – Financial Times
Companies unleashed a wave of global takeovers on Monday, agreeing more than $70bn in deals as multinationals targeted the booming US market to squeeze out competitors and find new sources of growth.
Global Head of FX Karlsson Leaves Danske Bank – FXWeek
Niklas Karlsson, global head of foreign exchange at Danske Bank, left the firm earlier this month, FX Week has learned.
Markets are Tempted to Renew Pressure on the Fed – Bloomberg
The challenge for investors continues to be how best to capture short-term upside while protecting against longer-term uncertainties.
Brazil’s Guedes is Not Worried by Deficit, Currency Fluctuations – Reuters
Brazilian Economy Minister Paulo Guedes said that Brazil’s economy was starting to recover and he was not worried about exchange rate fluctuations that saw the real close the day at its weakest ever against the US dollar.
Recession Warning of Inverted Yield Curve Looks So Last Year – Bloomberg
If 2019 was the year the yield curve went mainstream, with an inversion sending a stark recession warning, then 2020 is already shaping up as a welcome return to normality.