Top Headlines 

Tough Question for FX Investors: How Should You Execute That Trade? – Greenwich Associates

The Greenwich Report highlights several important findings including the premium FX investors place on access to disclosed dealer liquidity, which is valued more highly than CLOB or non-bank liquidity combined and that firms see post-trade workflow as twice as important as pre-trade analytics.

The Hottest Senior Role That Every Bank is Struggling to Fill – eFinancialCareers

Big banks always seem to be in a poaching war over one particular position of importance, resulting in a game of musical chairs among senior bankers who are switching firms. Right now, Wall Street recruiters say much of the action is happening in FX sales, particularly covering corporates.

The Big Problem with Machine Learning Algorithms – Bloomberg

Machine learning is enabling investors to tap huge data sets such as social media postings in ways that no mere human could. Yet, despite the enormous potential, its record remains mixed.

In the FICC of It (podcast) – Profit & Loss

This week’s podcast discusses NDF market development, follows up on a recent paper about spoofing and pinging in the OTC FX market, before moving onto the latest gossip surrounding a “bank” looking for a buyer. It closes out with reasons why Scandinavian banks have not been overwhelmed by global players as has happened in some other regional markets. 

Regulatory News

Industry Groups Set Out Impact of Hard Brexit on Derivatives – Markets Media

The paper describes the cliff-edge risks and the European Union regulatory requirements that would apply to derivatives in the event of a ‘no deal’, and the immediate adverse impacts on EU 27 firms and EU 27 clients of UK entities.

Goldman Sachs, Liquidnet and Bloomberg Called Out in First MiFID II Data Indicators from ESMA – The Trade

First data completeness indicators for double volume caps from ESMA reveal Goldman Sachs, Liquidnet and Bloomberg had highest amount of incomplete data submissions.   

Mifid II Authorisation Rules Remain Ambiguous: Legal Expert – Global Investor (subscription)

Third country access and commodity derivatives authorisation rules are still unclear, a legal expert said at Trading CEE in Warsaw.

DTCC Links with Firms for EU Sec Finance Reporting – Global Investor (subscription)

Deal with Broadridge, FIS and others is designed to streamline upcoming EU securities lending and repo reporting rules.

Unfinished Business: US Treasuries Reform Stalls – (subscription)

Efforts to improve the clearing and settlement of US government debt – and oversight of who trades it – are still incomplete. 

Crypto News

Crypto Industry on ‘Brink of an Implosion,’ Researcher Says – Bloomberg

Echoing sentiments of mainstream economists, Juniper Research is warning that many of the metrics in the cryptocurrency world are pointing to a market implosion. 

Switzerland Embraces Crypto with Fund License for Startup Firm – Bloomberg

Crypto Finance has obtained the same license as professional fund managers from Switzerland’s financial regulator as the country pushes to become a leader in the growing virtual-currency industry. 

Exchanges Still Seeking Blockchain Uses – Sell-Side Technology (subscription)

Many global exchanges and CCPs are in the experimental stage when it comes to blockchain technology.

Cryptocurrencies: Israel Enters into Crypto Partnership with Switzerland – Euromoney

Two of the world’s most advanced cryptocurrency markets agree to exchange notes on blockchain regulation.

Company News 

Rouse Exits NEX After More than 20 Years with EBS – Profit & Loss

Fulinda Malone-Rouse is leaving NEX Markets, where she spent the past 20 years, most recently as Regional Liquidity Manager for EBS Direct, based in New York.

NEX Teams Up with Capitolis for Novation – Profit & Loss

NEX Optimisation and Capitolis have entered into a partnership to provide immediate access to Capitolis’ FX novation service through the NEX Infinity platform. 

Morgan Stanley, Credit Suisse and JP Morgan Clear First OTC SOFR Swaps with CME – The Trade

Five major market participants have cleared $200 million in notional of OTC SOFR swaps since CME launched the product in May this year. 

HSBC Expands Content, Reach of Research App on Symphony – Inside Market Data (subscription)

The bank says its research app is already one of the most popular on Symphony’s messaging platform. 

GAIN Commits to $50m Buyback after GTX Unit Sale – Finance Magnates

After selling GTX for $85 million, the brokerage is committing to use the cash to purchase own shares. 

SocGen Adopts Duco Reconciliation Tech – Profit & Loss

Societe Generale plans to deploy Duco’s enterprise software as a service platform across its business as one of its primary reconciliation and data control systems.

HKEX Implements Nasdaq’s Risk Management Tech for Cash and Derivatives – The Trade

The real-time risk management technology, which is deployed via the Nasdaq Financial Framework, provides central clearing counterparties with more efficient operations and compliance for regulatory requirements. 

Market Savvy 

Pound Hits 3-1/2 Month High vs Euro on Fresh Brexit Deal Hopes – Reuters

Sterling hit a new 3-1/2 month high versus the euro and added to gains against the dollar on Wednesday on optimism that Britain and the European Union can agree a Brexit deal soon.

Euro Steadies as Dollar Rally Takes a Pause – Reuters

The euro steadied near $1.15 and away from seven-week lows on Wednesday as a fall in US Treasury yields took some steam out of the dollar’s recent run.

Dollar Rally on Hold While Treasuries Sell-Off Eases – Financial Times (subscription)

There was a sense of caution across global markets, with investors holding their nerve as 10-year US Treasury yields stayed off their recent seven-year highs. The dollar’s rally also took a pause.

Investors Brace as China Renminbi Slips Towards 7 Against Dollar – Financial Times (subscription)

Investors are bracing for China’s currency to slump to Rmb7 against the dollar, an “important psychological marker” of weakness, as trade tension with the US mounts and the country’s economic fundamentals soften.