Top Headlines

Theresa May Seals Brexit Deal on Financial Services – The Times (subscription)

Theresa May has struck a deal with Brussels that would give UK financial services companies continued access to European markets after Brexit.

• UK, EU Close to Brexit Deal on Financial Services: UK Official – Reuters
• Brexit Financial Services Deal Talk Moves Pound Higher – Financial Times (subscription)
• Sterling Climbs on Report Banks to Get EU Access after Brexit – Bloomberg
• UK Expects Brexit Deal with EU By November 21, Dominic Raab Says – Bloomberg

What to Make of the Cartel Acquittal? – Profit & Loss

Shortly after we published the news that Richard Usher, Rohan Ramchandani and Chris Ashton, the three members of the now notorious “Cartel” chat room, were found not guilty of FX market manipulation by a New York court last Friday, my phone started buzzing.

FX in Asia: A Question of Risk and Reward – Profit & Loss

The potential for Asian FX markets has long been talkedabout but has rarely been delivered. That may be changing, however.

UK Court Makes It Official: Ex-HSBC Trader Won’t Be Extradited – Bloomberg

Stuart Scott, the former head of currency trading at HSBC, won’t be sent to New York to face wire-fraud charges after UK judges rebuffed a request by American prosecutors.

France and Italy Dangle Juiciest EU Tax Breaks for Brexit Bankers – Financial Times (subscription)

France and Italy are offering the most generous tax breaks to London bankers moving to the European continent after Brexit, research compiled for the Financial Times shows. Some relocations have already begun: Goldman Sachs has moved 60% of the investment bankers and financing experts it intends to ship from London to Milan, Frankfurt and Paris.

• UBS to Shift 64 Jobs from London in Initial Brexit Move – Financial News (subscription)
• Citigroup to Move 63 Traders and Bankers from UK Over Brexit – Bloomberg

Rate Rises, Structural Reforms Transforming Swaps Market: BIS – Risk.net (subscription)

A hawkish Federal Reserve and a brace of swaps market innovations worked to turbocharge growth in over-the-counter interest rate derivatives notionals in the first half of the year, while simultaneously decimating their actual market values. 

Regulatory News

Reassurance for Trading Venues, TRs Required: FIA – Global Investor (subscription)

The Futures Industry Association welcomes the European Commission’s stance on continued access to UK CCPs post-Brexit.

Asia Struggles to Meet 2020 EU Benchmarks Regulation Deadline – Regulation Asia (subscription)

A number of non-EU benchmark administrators may fail to obtain BMR registration by January 2020, according to a new report from ASIFMA and Herbert Smith Freehills.

EU Prop Trader Regime Could Capture Foreign Firms – Risk.net (subscription)

Group capital rules may be applied to third-country arms of EU market-makers.

Market Cheats Getting Caught in Record Numbers – The Wall Street Journal (subscription)

Federal regulators have ramped up their pursuit of traders who use a bluffing tactic known as spoofing to manipulate market prices, enforcement officials said, leading to a record number of manipulation cases.

Crypto News

Hong Kong Watchdog Outlines Plans to Regulate Cryptocurrency Industry – Financial Times (subscription)

Hong Kong’s securities watchdog has announced plans to regulate cryptocurrency exchanges and funds that invest in digital assets to protect investors.

Jamie Dimon: ‘I Don’t Really Give a Sh*t About Bitcoin’ – Financial News (subscription)

On the eve of bitcoin’s 10th birthday, Jamie Dimon said he never intended to be the leader of the bitcoin haters.

Bitcoin Turns 10: Still Not All Grown Up – The Wall Street Journal (subscription)

The digital currency was meant to be a payments network. That isn’t exactly what happened.

• Bitcoin’s Halloween Birth 10 Years Ago Led to Unimaginable Gains – Bloomberg
• Birthday Blues for Bitcoin as Investors Face Year-on-Year Loss – Reuters

Sterling Trading Tech to Expand into Futures, Crypto – Global Investor (subscription)

There is a huge effort to make crypto more equities-like, experts at the Chicago-based tech firm observe.

Coinbase’s Head of Trading Resigns After Six Months on Job – CoinDesk

The head of trading at Coinbase, Hunter Merghart, has resigned from the US crypto exchange and wallet provider after just six months on the job.

Company News

Broker Takes Baby Steps Back into Crowded Market – Euromoney

Marex Spectron is making a low-key return to the FX market, just over four years after it terminated its foreign exchange business. 

CFH Clearing Extends OneZero Partnership – Profit & Loss

CFH Clearing has formed a partnership with OneZero Financial Systems to enable it to provide local liquidity from New York (NY4) to brokers and banks.

Advanced Markets Launches in the UK – Profit & Loss

Advanced Markets, a provider of FX liquidity and prime-of-prime services, has launched in the UK as an FCA regulated company.

TP ICAP in talks to Buy US’s Axiom Commodities Group – Financial Times (subscription)

TP ICAP, the UK interdealer broker, is in advanced talks to buy smaller US rival Axiom Commodity Group, in a move that will further bolster its position as the world’s largest energy broker.

Fidessa, ION Merger Opens Up “Interesting Opportunities” – Global Investor (subscription)

Fidessa’s global head of derivatives says capital could be freed up more quickly with end-to-end integration.

Market Savvy

Dollar Retreats from 16-Month High – Financial Times (subscription)

Investors pulled the dollar back from a 16-month high on Thursday, feeding a broad-based rally in European currencies and a rise in the price of gold.

Euro Rebounds as Investor Sentiment Recovers; Sterling Surges – Reuters

The euro rallied half a percent on Thursday as currencies hit hard by recent dollar buying surged higher in a more positive mood for risk-taking.

Australian Dollar Jumps after Trade Surplus Beats Estimates – Financial Times (subscription)

The Australian dollar extended gains in late morning trading in Asia on Thursday after jumping on a better-than-expected trade surplus for September.

Pound to Bounce 5.5 Percent if Brexit Deal Struck: Reuters Poll – Reuters

Sterling will rise around 5.5 percent against the dollar if Britain and the European Union agree a divorce deal, a Reuters poll found, but will sink more than 6 percent if no agreement is reached.

China to Defend 7 Yuan Per Dollar Rate, But May Find it Tough: Reuters Poll – Reuters

Chinese authorities will defend the yuan from weakening past the psychological 7 per dollar rate, very close to where it is trading now, according to a Reuters poll of FX strategists who said the currency will cut its losses in the coming year.

• Goldman Says Yuan Will Hit 7 as China Avoids Heavy Meddling – Bloomberg

Emerging Market October Sell-Off Signals Consolidation in Store – Bloomberg

Emerging markets finished October in the red as the global stock selloff, concern over the Federal Reserve’s tightening path and an escalation in the US-China trade war scupper the chance of a recovery in this year’s worst-hit economies.