Top Headlines 

The New Learning Curve: Using the Data – Profit & Loss

The paradox of data is, as observed by panellists at Forex Network Chicago, while the data itself is becoming cheaper and more easily accessible than ever before, the resources being allocated to analysing it are increasing, bringing with it increased costs. 

Tough Environment Has Hedge Funds Heading for the Exits – Pensions & Investments (subscription)

Difficult investment conditions for hedge fund managers are pushing even seasoned firms to get out of the business. Long-tenured industry observers said it’s unusual to see so many large well-known hedge fund management companies return investor cash over a short period of time.

Speed Bumps Needed to Curb “Bad Trading”: Expert – Global Investor (subscription)

The rise in speed has led to a deterioration in execution quality and liquidity, according to ParFX’s COO.

Five Key Takeaways from the Biggest US Banks’ Earnings Reports – Bloomberg

Banks saw positive results for equities trading, while fixed income trading revenue generally declined.

Execution Moving Beyond Compliance in Post-MiFID II World – The Trade

Buy-side firms are now looking beyond the compliance requirements of MiFID II and resuming their focus on execution quality, according to the results of The Trade’s Execution Management Systems Survey 2018. 

Regulatory News 

CFTC’s Behnam Flags CCP Governance Concerns – GlobalCapital (subscription)

The commissioner discussed conflicts of interest that may exist in different levels of CCPs during a speech at the Federal Reserve Bank of Chicago, during its fifth annual conference on CCP risk management.

Could a Ruling in CFTC v. DRW Finally Be in the Offing? – Crain’s Chicago Business

A five-year-old market manipulation case against one of the biggest US trading firms may have just gotten a new reason to move ahead.

Banks May Restructure Desks for FRTB: Expert – Global Investor (subscription)

Banks are weighing up whether the standard approach or internal models approach is more beneficial, an expert says.

US Warns of Risk from Hard Brexit and Wants a Transition Period – Bloomberg

A senior Treasury department official warned that a hard Brexit could hurt global financial stability and said the US is working with officials in the UK and EU to limit risks of Britain’s withdrawal from the bloc.

Crypto News

Most Tokens from ICOs Are Securities, Former CFTC Head Says – Bloomberg

Gary Gensler, former chairman of the US Commodity Futures Trading Commission, said that most cryptocurrencies sold through initial coin offerings should be considered securities.

Europe is Killing it in Crypto – Business Insider

In the race to be the world’s dominant crypto region, European countries are crushing their peers in the US and Asia. The value of “token sales” in Europe this year is about $4.1 billion, far above the $2.6 billion in the US and $2.3 billion raised in Asia.

CryptoCompare Publishes Cryptoasset Report – Markets Media

CryptoCompare, the global cryptocurrency market data provider, has published the ‘Cryptoasset Taxonomy Report’. The taxonomy provides retail and institutional investors, regulators and the industry with an independent classification of cryptoassets, based on the depth, breadth and scope of CryptoCompare’s global datasets. 

Cryptocurrency Exchange Coinbase Sets Up Brexit Contingency Plan – Financial Times (subscription)

Coinbase, the US cryptocurrency exchange, is opening an office in Dublin as part of its contingency planning before the UK leaves the EU next year.

Roubini: The Big Blockchain Promise is a Lie – Financial News (subscription)

Bitcoin has plummeted from last year’s crazy valuation — now it’s time to drop expectations for distributed ledger tech.

ErisX Expands With Three Senior Hires – Profit & Loss

The recently launched platform for digital asset trading, ErisX, has hired Kelly Brown as chief commercial officer, Liz James as head of clearing and Michael Piracci as senior counsel. 

Company News 

Misconduct Costs Are Starting to Bite for Australia’s Big Banks – Bloomberg

National Australia Bank on Tuesday joined Westpac Banking Corp. and Australia & New Zealand Banking Group in announcing new provisions associated with the costs of cleaning-up years of bad behaviour. All three banks are putting more money aside for remediation including compensating wealth customers who were charged fees for services they didn’t receive.

Shterenberg Exits BAML – Profit & Loss

Sources familiar with the matter tell Profit & Loss that Alex Shterenberg, global head of FX algos at Bank of America Merrill Lynch in New York, has left the bank.

FIA Epta Appoints Flow Traders’ Dorst to Vice Chair – Global Investor (subscription)

Diederik Dorst has been appointed as vice chairman of the FIA European Principal Traders Association.

CME Group Reports Uptick in APAC and Latin America Volumes in Q3 – Finance Magnates

CME Group has announced its international (outside of North America) third-quarter trading volumes. CME saw an increase in both its Asian and Latin American markets, but experienced a five percent decline in overall international daily volumes.

Trading Technologies Rolls Out Order Management System – The Trade

Derivatives trading software specialist Trading Technologies has unveiled its new full-service order management system which will be rolled out early next year. 

Refinitiv and Microsoft Team Up for Market Data Deal – The Trade

Refinitiv, the recently rebranded Financial & Risk business of Thomson Reuters, has teamed up with Microsoft to integrate its financial and markets data with Microsoft products including Excel, MSN Money and Bing. 

ADM Joins oneZero as FX Clearing, Liquidity Provider – Profit & Loss

ADM Investor Services will be providing FX prime brokerage, execution and settlement services through oneZero Financial Systems’ EcoSystem.

Market Savvy 

Dollar Gains for a Second Day as Markets Eye Fed Minutes – Reuters

The dollar edged higher on Wednesday as a rally on Wall Street boosted risk appetite, although gains were capped before the release of Fed minutes later in the day.

Why the Pound is Keeping its Cool in a Big Week for Brexit – Financial Times (subscription)

Sterling has been described as the UK government’s unofficial opposition, delivering a series of thumbs-down responses to Brexit plans over the past two years.

China Ditches Deleveraging, Posing Yuan Hit, Citigroup Says – Bloomberg

China’s moves to boost liquidity in an effort to safeguard economic growth are eroding the country’s yield premium over the US, putting “renewed pressure” on the yuan, according to Citigroup.

I’m Positive on EM Currencies, Says Woodman Asset’s Berg – Bloomberg

Bernd Berg, global macro and foreign exchange strategist at Woodman Asset Management, discusses emerging market currencies, including the Brazilian real and the Russian ruble.