Top Headlines

Puth to Step Down as CEO of CLS – Profit & Loss

David Puth is stepping down as the CEO of CLS after leading the company since 2012. Chairman Kenneth Harvey will act as interim CEO until a successor is named.

Changing Market Structure a Challenge to Central Banks’ Monitoring of FX Markets: BIS – Profit & Loss

The Bank for International Settlements’ Markets Committee has released a report looking at the evolution of what it terms fast-paced electronic markets (FPMs), focusing mainly on spot FX, and the challenges this evolution has for central banks.

US Attorneys Deny ‘Shielding’ Cartel Witness – FX Week (subscription)

US attorneys have denied intervening with any foreign regulator on behalf of a key witness in its case against three former UK foreign exchange traders charged with price manipulation.

A New Breed of FX Hedge Fund – Profit & Loss

There is a new breed of hedge funds using artificial intelligence tools to trade the currency markets.

Consolidated Feeds Cost Industry $1.4bn a Year, Survey Finds – FX Week (subscription)

Despite the growth of direct data connections, spending on consolidated feeds is set to rise, Greenwich Associates finds.

Libor-Rigging Trial Starts in US for Ex-Deutsche Bank Traders – Bloomberg

Two former Deutsche Bank traders are defending themselves in a New York court this week against charges they conspired to manipulate Libor, a benchmark for interest rates, more than seven years after the start of a global crackdown on the practice.

Need for Security Drives Cloud Adoption, Says Survey – FX Week (subscription)

The share of cloud spend in financial firms’ IT budgets is set to rise to 47% by next year – up from 30% now.

Lehman’s Ghost: How Three CCPs Anchor Models to Crash – (subscription)

The Lehman crash still haunts the margin models of LCH, CME and Eurex, albeit in different ways.

Pay Passes $420,000 for Wall Street’s Broker Dealers – Financial News (subscription)

The average salary and bonus for employees at broker-dealer firms in New York City increased to $422,500 in 2017 and to $389,000 for securities-industry employees on Long Island, according to New York State Comptroller Tom DiNapoli’s annual survey.

Regulatory News 

IMF Warns UK Faces ‘Substantial Costs’ from No-Deal Brexit – Financial News (subscription)

IMF chief Christine Lagarde says no-deal would send the pound tumbling and push up government borrowing.

FCA Urges EU Venues to Apply for Post-Brexit Recognition – FOW (subscription)

European venues that wish to continue operating in the UK post-Brexit must apply for recognition within two weeks.

BofE Publishes Register for Sec Lending, Repo Code – FOW (subscription)

The UK central bank published its ‘public register’ for the UK Money Markets Code on September 17 with over 100 firms listed.

Only 44% Firms Expect to Be Ready for FRTB: Survey – FOW (subscription) 

IHS Markit calls for more urgency as less than half of the firms surveyed expect to be ready for FRTB.

Richard Clarida Sworn in as Vice Chairman of Federal Reserve Board – The Wall Street Journal (subscription)

Trump nominated the Columbia University economist in April to a four-year term as Fed’s No. 2.

MAS, CFTC Sign Fintech Cooperation Arrangement – Regulation Asia

Cooperation arrangement focuses on information sharing and facilitating referrals of fintech firms between Singapore and the US. 

Crypto News 

Crypto SRO a “Critical Step Forward”: Coinfloor – FOW (subscription)

The Virtual Commodity Association will help build a stabilising framework, an expert says. 

Goldman Sachs Alum’s Crypto Fund Expands Even as Markets Tumble – Bloomberg

BlockTower Capital, co-founded a year ago by former Goldman Sachs investment manager Matthew Goetz, expanded its staff this year and opened a second office amid the rout in digital assets, according to a person familiar with the firm.

Cryptocurrency Market Will Be Cyclical for a Long Time, CoinList CEO Says – Bloomberg TV

Andy Bromberg, CoinList co-founder and chief executive officer, discusses the performance of cryptocurrencies.

Ripple Hints its Cryptocurrency Product Will Go Live ‘In the Next Month or So’ – CNBC

Blockchain start-up Ripple could launch a commercial application of its cryptocurrency-focused product “in the next month or so,” an executive at the company has told CNBC.

London Capital Group Announces Crypto Offering – Traders Magazine

Clients of LCG will now be able to trade CFDs on popular cryptocurrencies including Bitcoin and Ethereum.

Coinbase’s New NYC Office to Hire 100 in Wall Street Crypto Push – CoinDesk

The crypto industry unicorn Coinbase has aggressive growth plans for its newly opened New York office, which caters to institutional clients. 

Company News 

360T Expands its Algo Suite – Profit & Loss

360T has expanded its algo suite with the addition of eight providers, offering over 60 algo strategies. It says it expects to add another four providers before the year end, taking the total to 17. 

BNP Paribas Continues Adding to G10 FX Options Desk – Profit & Loss

BNP Paribas has appointed Baris Temelkuran as global head of G10 FX options trading. The bank added to its G10 FX options trading business with three hires over the summer.

Nasdaq Says More Than 90% of Clearing House Buffer Has Been Restored – Reuters

Members of Nasdaq’s Nordic commodities exchange have replenished more than 90 percent of clearing house contingency funds that were lost last week when a private Norwegian trader defaulted during a spike in market volatility.

Market Savvy 

Dollar Falls for Second Day as Trade War Escalates – Reuters

The dollar fell for a second consecutive day and the euro gained on Tuesday after US President Donald Trump escalated his trade war with China by imposing 10 percent tariffs on about $200 billion worth of Chinese imports. 

Sterling Pulls Back from Six-Week Highs Ahead of EU Summit – Reuters

The British pound pulled back from six-week highs on Tuesday as traders booked profits and investors struck a more cautious note about progress towards a Brexit deal ahead of a European Union summit later this week.

The Dollar/Euro: The European Currency Looks To Challenge – Seeking Alpha

The US dollar is the world’s reserve currency, but that could change if Europe has anything to say about which currency instrument takes a leadership role in the future.