Top Headlines 

Q&A: CFTC’s Giancarlo on the Race to Overhaul Cross-Border Rules –

When Christopher Giancarlo announced plans in early September to overhaul how the US Commodity Futures Trading Commission will treat foreign clearing houses, he literally moved markets. But now he says his far-reaching proposals in this area might not be completed during his time as chairman. 

FX Market Responds to BIS Report – ‘That’s Evolution, Baby’ – Euromoney
Participants and analysts have dismissed any concerns about the key findings of the BIS market committee’s electronic markets report relating to the concentration of FX turnover and spot trading fragmentation.

Market Participants Are Too Quick to Run to the Lawyers (Opinion) – Profit & Loss

It worries me that we are heading to an environment in which the first instinct in someone who loses money is to cry “foul” and start looking to the lawyers. If there is a problem it should be fixed, but surely the first place to address the issue is with an exchange owner and then the regulators? 

Build or Buy? Exchanges Continue to Branch Out For Revenues Through Acquisition – JLN

Exchanges are continuing to look at two areas for revenue growth – consolidation and acquisition of non-exchange service firms, according to a new report from Burton Taylor. 

Regulatory News

EU Regulators Draft Market Agreements with UK’s FCA – Financial Times (subscription)

European markets regulators are drafting a series of bilateral agreements with their UK counterparts to limit market instability as fears grow that Britain will leave the EU without a political agreement.

Euribor Transition Raises Fears of Sleepwalk to Chaos – Financial Times (subscription)

When a €150tn market is required to make a colossal leap into the unknown the risk of a screw-up isn’t negligible. But that is the predicament facing Europe’s money markets as global authorities make a co-ordinated attempt to wean investors, companies and banks off the -ibor interest rate benchmarks.

Dealers Sour on Mifid’s Systematic Internaliser Label –

Europe’s Mifid II trading rules have thoroughly shaken up the financial industry, but one of the biggest changes – an explosion in the number of so-called systematic internalisers – may be about to go into reverse. 

ESMA Keeping Tight Leash On EU Trading Venues – JLN

Steven Maijoor, chair of the European Securities and Markets Authority (ESMA), said MiFID II rules launched in January are indeed living up to expectations of pushing more trading onto exchanges, but more work may be required.

Japan Waves Goodbye to UK as ‘Gateway to Europe’ Post-Brexit – Bloomberg

After a February meeting between UK Prime Minister Theresa May and 19 Japanese business chiefs. Tokyo’s ambassador to Britain warned what might happen if Brexit took an unfavorable turn for foreign investors.

US Regulator Enforcement Actions Jump 25%, Rebutting Democrat Fears – Reuters

The number of enforcement actions brought by the US swaps regulator has jumped 25 percent compared with the previous administration, rebutting fears the agency would go soft on the financial industry under President Donald Trump.

FESE Requests Clarification on LEI Application – Inside Reference Data (subscription)

As Legal Entity Identifier use becomes more widespread, nagging application inconsistencies remain. In feedback to the Financial Stability Board, the Federation of European Securities Exchanges (FESE) has highlighted problems – specifically, inconsistencies in how LEIs are applied to some entities. 

Crypto News 

Eris Exchange to Create Crypto Market Backed by DRW, Virtu – Bloomberg

Eris Exchange, a Chicago-based derivatives market, is opening a cryptocurrency market backed by DRW Holdings, Virtu Financial and TD Ameritrade Holding Corp.

trueEX to Launch Bitcoin Swaps Contracts – The Trade Crypto

US SEF trueEX will launch Bitcoin swap contracts through its digital asset marketplace trueDigital.

WSJCoin: Yes, We Created Our Own Cryptocurrency – The Wall Street Journal (subscription)

In this documentary, we experiment with a digital currency of our own to understand what drives the market.

Winklevoss’s Gemini Obtains Insurance for Crypto Assets – Bloomberg

Gemini Trust, the digital asset exchange founded by Cameron and Tyler Winklevoss, said that it secured insurance for customers’ digital assets. 

Company News 

CME Initiatives Coalesce Around Spot FX Basis Spreads – Euromoney
Some six months after its FX Link service went live, CME Group reckons the benefits are being felt beyond the OTC spot FX and FX futures markets.

Rahbari Handed Senior FX Role at Citi – Profit & Loss

Ebrahim Rahbari has internally moved to join Citi’s FXLM business as global head of FX analysis and content and has also been named as the bank’s chief G10 currency strategist.

Eurex Volumes Up in Sept, ICE Numbers Are Flat – Global Investor (subscription)  

Derivatives volumes at Eurex, BME and Moex grew in September while ICE saw similar volumes to the previous year.

LSEG Re-Joins WFE Citing Commitment to Open Access – Global investor (subscription)

The World Federation of Exchanges re-admits the London Stock Exchange as a member following its resignation in 2013. 

Market Savvy 

Dollar Perched at Six-Week Highs on US Yield Surge – Reuters

The dollar held at a six-week high on Thursday as an overnight jump in US Treasury yields on the back of strong data prompted investors to add long bets in the greenback against higher-yielding and emerging market currencies.

Sterling Gains After EU Source Welcomes New UK Brexit Proposals – Reuters

Sterling gained on Thursday after a European Union source said new British proposals for avoiding extensive border checks in Ireland after Brexit were “a step in the right direction” and “make finding a compromise possible”.

Emerging Market Currencies Head for Worst Day Since Lira Meltdown – Financial Times (subscription)

Emerging market currencies were back under pressure on Thursday amid persistent dollar strength and a jolt higher in developed market bond yields.