Top Headlines 

UK Antitrust Regulators Launch Inquiry into CME-NEX Deal – Financial News

UK antitrust regulators have kicked off an inquiry into whether they should approve exchange giant CME Group’s £3.9bn purchase of Michael Spencer’s NEX Group. 

FX Data: How Disruptive are the Disruptors? – Euromoney

FX data providers are surprisingly coy when it comes to discussing the extent to which they have shaken up a market that has been described as ripe for disruption.

Quant Strategy in Emerging Market FX Posts Best Run in Six Years – Bloomberg

A quantitative-investing strategy is ringing up heroic returns picking the wreckage in emerging market assets.

Barclays Preserved Lehman’s Strengths While Nomura is an Also-Ran – Financial Times (subscription)

The UK bank has vaulted into global elite while the Japanese group is still outside it. 

Clearing Members Outraged By Single Trader Default at Nasdaq – FOW (subscription)

Clearing members outraged as Nasdaq requests €107 million to cover losses after single trader default.

How the Finance Workforce is Changing, According to LinkedIn – Financial News (subscription)

More diverse, but less international – and with regulatory and tech experts in high demand. Welcome to finance in the social-media era. 

Regulatory News 

UK Prepares Legal Fight with EU Over Commodities Trading – Financial Times (subscription)

The British government is preparing for a legal battle with Brussels over EU attempts to force it to increase taxes on commodity derivatives trading, with the UK pledging to fight a move that could hit the City of London’s competitiveness after Brexit.

Banks Take Key Step in Replacing Tainted Euro Rate Benchmarks – Bloomberg

A group of banks recommended the euro short-term rate, or Ester, as their preferred new gauge of how much they charge each other for borrowing, the European Central Bank said. Use of the existing benchmark – the euro overnight index average, or Eonia – will be restricted in 2020 because it doesn’t comply with European Union standards.

Brexit Deal Talk ‘Too Late’ for Departing Brokers – (subscription)

Brokers and traders based in the UK have already begun to activate contingency plans for a no-deal Brexit, and claim not even a last-minute agreement between UK and EU politicians will be enough to reverse those plans. 

Former US Regulators Defend Financial Crisis Actions – Financial Times (subscription)

Bernanke, Geithner and Paulson admit case for bank bailouts failed to sway the public.

Crypto News 

Morgan Stanley Plans to Offer Bitcoin Swap Trading for Clients – Bloomberg

Morgan Stanley plans to offer trading in complex derivatives tied to the largest cryptocurrency, according to a person familiar with the matter, joining other Wall Street firms in creating ways for clients to play the digital currency market.

Companies Race to Solve Bitcoin’s Security Problem Despite Slumping Prices – CNBC

Despite investors getting burned by bitcoin this year, companies are building key guardrails that could speed up more crypto adoption. 

Mystery of the $2 Billion Bitcoin Whale That Fueled a Selloff – Bloomberg

When Bitcoin plunged as much as 15 percent over two days last week, a theory emerged – where else? – on the Internet: a whale was on the move. 

Japan’s FSA Expands Crypto Team to Handle Exchange License Review – CoinDesk

Japan’s financial market watchdog is looking to expand its team focused on crypto-related activities next year to better handle the growing interest among Japanese companies in gaining a cryptocurrency exchange license. 

BitGo Gains Crucial Regulatory Approval for Custody Offering – The Trade Crypto

Approval means BitGo can offer institutional investors storage for digital assets that is more in line with traditional capital markets offerings.

Blockchain Takes a Back Seat as Banks Focus on AI and Data – The Trade

Research from AFME and PwC found that blockchain has little or no current technology investment focus for the majority of banks.  

Company News 

Nasdaq to Buy Swedish Trading Solution Provider Cinnober – Reuters

Exchange operator Nasdaq said on Friday it planned to buy Swedish financial technology provider Cinnober in a deal valuing the business at around 1.7 billion crowns ($190 million).

Thomson Reuters, Bloomberg Face Off on Treasury-IRS Data – Inside Market Data (subscription)

After luring one of the trading partners behind Thomson Reuters’ RCM 19901 data service, Bloomberg is positioning a new US Treasury-interest rate swap data service directly against its rival.

Refinitiv Opportunities: The Future of Thomson Reuters’ Financial & Risk Business – Tabb Forum

Blackstone’s investment in Thomson Reuters’ Financial & Risk business will reposition the new organization well into the future. While F&R already has been a leader in many of its market segments, independence – and capital from Blackstone – will fuel tremendous opportunities in the spinoff. Larry Tabb examines the possibilities.

TPI Partners with Yonhap for Data Distribution – Profit & Loss

Tullett Prebon Information (TPI), which provides independent real-time price information from the global OTC financial and commodity markets, is expanding its partnership with Yonhap Infomax, a South Korean real-time news and financial data service.

Exegy to Offer CME Normalised Data – Profit & Loss

Exegy has announced the availability of low-latency, normalised market data from the CME through its new Data Port point of presence in the Aurora, Illinois co-location data centre. 

Market Savvy 

Euro Hits Two-Week High – Reuters

The euro rose to a two-week high on Friday after weaker-than-expected US inflation data continued to weigh on the dollar and a broader recovery in investment sentiment supported the single currency.

Yuan Weakens After Surge on Trade Talk Hopes, On Course for Weekly Loss – Reuters

China’s yuan weakened against the US dollar on Friday, pulled down by companies’ stocking up on lower-priced greenbacks and low expectations that planned Washington-Beijing talks will produce a breakthrough in their trade dispute.

Sterling Set for Second Biggest Weekly Rise in 2018 – Reuters

Sterling rose on Friday and is set for its second biggest weekly rise in 2018 as imminent concerns over the outlook of emerging markets faded after Turkey’s sharp rate hike and after the central bank upgraded growth forecasts at a policy meeting.