Top Headlines

Sterling Falls After Leaked Papers Suggest Leaving Single Market Could Cost UK £66bn a Year – Independent

The pound has fallen to its weakest level since the financial crisis broke out as worries persist over UK’s economic prospects outside the EU.

‘Flash Crash’ Sparks Renewed Calls for Sterling to Near Dollar Parity – CNBC

The UK currency’s weakness is set to continue, according to several market watchers, with many suggesting sterling could even reach parity with the US dollar.

Britain Should Embrace Weaker Pound and It Needs to Fall Further – Telegraph

The slump in sterling is a blessing in disguise after years of overvaluation and helps to break the corrosive stranglehold of the financial elites over the British economy, according to a former bail-out chief for the International Monetary Fund.

Ahead of Brexit Talks, Companies Puzzle Over the Pound – Wall Street Journal (subscription)

Currency’s weakness forces many firms to adjust their hedging strategies.

Hasenstab Heads Up New Franklin Templeton Global FX Fund – Reuters

US fund manager Franklin Templeton said it was launching a new global currency fund headed by its star bond investor Michael Hasenstab and one of his chief lieutenants.

CTA Performance Down for September – Profit & Loss

Commodity trading advisors endured another difficult month in September, according to data from Societe Generale Prime Services. 

An Increasing Number of Traders Think the US Dollar Will Strengthen – Business Insider

According to ANZ, net US dollar long positioning against a basket of major currencies continued to swell last week, leaving it at the highest level seen since late August.

GFMA Names Jury as Chair, Adds Scotiabank to Board – Profit & Loss

The GFMA’s Global FX Division has named Claudia Jury, managing director and co-head, currencies and emerging markets at JP Morgan as its new chair, and Nigel Khakoo, head of G10 FX at Nomura as vice chair.

Yuan Set for Longest Losing Streak in Two Years Post-IMF Entry – Bloomberg

After joining the International Monetary Fund’s reserves basket on Oct. 1, the yuan has gone in one direction: down.

Brexit Brings Headaches for Regulation-Weary Traders – Financial Times (subscription)

Clearing executives are still adjusting to the slew of post-crisis reforms.

Regulatory News

Buy-Side Must Make Changes Now for MiFID II End-Investor Rules – The Trade

Report has urged buy-side companies to act now to ensure compliance with MiFID II requirements on protecting end-investors.

Esma Releases MiFID II Transaction Reporting Guidelines – Waters Technology (subscription)

Firms must improve their technology as European regulator issues guidance for firms, venues and reporting entities on interpreting transaction reporting, order record-keeping and clock synchronization for MiFID II compliance.

CFTC ‘Puzzled’ by CPMI-Iosco Plan on Margin Pro-Cyclicality – Risk (subscription)

Prescriptive models could increase systemic risk at CCPs, market participants warn.

Asset Managers Lead the Charge for Voluntary Clearing – Risk (subscription)

Central counterparties are seeing a surge in voluntary clearing of interest rate swaps not currently mandated for clearing by US regulators.

CFTC Extends Temporary Relief to SEFs for Block Trades – Finance Magnates

The CFTC’s Division of Market Oversight extended the no-action relief which was granted to swap execution facilities from certain ‘occurs-away’ requirements in the definition of block trades.

Company News

Firms Missing Out on China Boom Despite RMB Uptake – Profit & Loss

Nearly a quarter of global businesses are now using the renminbi to trade with China, yet only two in five firms are aware of the trade initiatives being put in place by the Chinese government to facilitate cross-border trading, a HSBC Commercial Banking survey shows.

Goldman Warns China Capital Outflows May Be Worse Than They Look – Bloomberg

China’s currency outflows may be bigger than they look, with Goldman Sachs Group warning that a rising amount of capital is exiting the country in yuan rather than in dollars.

Market Savvy 

Firm Dollar Takes Asia FX Lower; Samsung Galaxy Note 7 Burns Won – Reuters

Most emerging Asian currencies slid on Tuesday with the Chinese yuan at another six-year low as the dollar stood tall on growing expectations that the US Federal Reserve will raise interest rates in December.

Malaysian Ringgit Holds Gain as Crude Oil Rebounds; Baht Slides – Bloomberg

Malaysia’s ringgit held gains, defying a decline in Asian currencies, as a jump in crude oil prices brightened the prospects for the nation’s energy revenue.

Canadian Dollar Crowned Best-Performing G10 Currency – Pound Sterling Live

The Pound to Canadian Dollar rate is forecast to continue its journey south as oil-sensitive currencies dominate.

Kiwi Hits Two-Month Low as Expectations of Clinton Presidency Stoke US Rate Hike Bets – New Zealand Herald

The New Zealand dollar fell to a two-month low as investors see a likely win by Democrat candidate Hillary Clinton in the US presidential campaign as paving the way for higher interest rates.