Top Headlines

UK Court Rules on Brexit, BoE Leaves Rates Unchanged – Profit & Loss

Sterling jumped almost 100 pips today after the British High Court ruled that the UK parliament must vote on Brexit before it is formally triggered by Article 50.

Currencies Spike as Trump Claws Back Deficit in US Election Poll – Financial Times (subscription)

A handful of currencies have moved sharply following the release of poll results showing Donald Trump has narrowed his gap in the US presidential election to Hillary Clinton.

Currencies on Edge Ahead of US Elections – Euromoney

As the US enters the final week of a long and bitter election, and with the High Court throwing the UK’s Brexit plans into doubt, political uncertainty has been the chief driver of the currency markets.

China May Be Set for a Shock Fall in Foreign-Exchange Reserves – Bloomberg

The apparent calm in the Chinese real economy belies the storm in an imbalanced currency market, testing the People’s Bank of China’s appetite for intervention.

China Faces Looming Bulge in Currency Pressure – Wall Street Journal (subscription)

The yuan’s next milestone may usher in a more challenging period.

Bats Reports Higher Profit in Q3 2016, Hotspot Boosts FX Market Share – Finance Magnates

Bats’ Hotspot venue remained strong in the global FX market with its share reaching 12.4% versus 11.6% in Q2.

Hedge Fund Demands Up the Pressure on Derivatives Prime Brokers – The Trade

Derivatives prime brokers are feeling increased pressure from clients to increase their services, as hedge funds pursue strategies targeting multiple asset classes.

Sweden’s Central Bank Criticized as ‘Dovish’ Policy Sends Currency Into a Tailspin – CNBC

Sweden’s crown became the world’s second-worst performing currency in October behind sterling, with analysts lambasting the country’s central bank and telling CNBC that it was supporting a “zombie landscape”.

Czech Central Bank Keeps Outlook for End of FX Cap in Mid-2017 – Reuters

The Czech central bank reiterated it expected to scrap its cap on the crown exchange rate around mid-2017 when inflation is expected to pick up enough to meet the bank’s two percent target.

What Not to Do When Floating a Currency: Lessons for Egypt – Bloomberg

If Egypt can learn anything from emerging markets that have abandoned control of their currencies, it’s that a half-hearted approach is bound to fail.

Thinking Outside the Broker in a Box – Euromoney

Broker in a box is promoted as a means of taking the pain out of establishing a regulated FX brokerage, but choosing the wrong approach and/or provider runs the risk of limiting the growth potential of the business from the outset.

Bitcoin’s at It Again – Bloomberg

Bitcoin has locked step with gold and taken to the skies as uncertainty about the US election increases volatility in global markets.

Regulatory News

Next SEC Chief Could Face Confirmation Fight – Wall Street Journal (subscription)

Depending on who occupies the White House and which party controls the Senate, the SEC nomination could spark a fight.

The EU Wants Global Bank Regulator to Soften Standards – Bloomberg

The European Union is raising the pressure on global banking regulators to ease proposed capital rules in an effort to protect lenders and the economy from major new costs.

CFTC Set to Tweak Rules for Automated Trading – Financial Times (subscription)

Regulator responds to futures industry backlash over ‘source code’ access.

Swaps Regulator Hit with Labor Complaint After Union Talks Stall – Bloomberg

Tensions between the main US derivatives regulator and its employees are rising as labor negotiations over working conditions have stalled.

Investment Lags Fear of Regulation – FOW (subscription)

Banks are not investing enough in technology despite a vast majority of surveyed firms expecting new regulation to have a dramatic effect on their businesses, a new study has found.

Company News

BestX Rolls Out First Product – Profit & Loss

BestX, formed earlier this year, has released its first TCA product.

R3 Blockchain Consortium Welcomes China Foreign Exchange Trade System – EconoTimes

R3 has announced the inclusion of China Foreign Exchange Trade System to its blockchain consortium, in a move to design and apply distributed and shared ledger-inspired technologies to global financial markets.

Market Savvy 

Asia FX Hampered by Regional Politics, Tense US Election Race – Reuters

Most emerging Asian currencies dipped to take back some of their weekly gains, hurt by a combination of unhelpful regional politics and lingering concerns about a contentious US presidential election race.

CAD Edges Higher as Risk Appetite Stabilizes – Reuters

The Canadian dollar strengthened slightly against its US counterpart as risk appetite stabilized, but the loonie traded in a narrow range ahead of domestic employment and trade data on Friday.

Ghana and Uganda’s Currencies Seen Weaker, Naira Stable – Reuters

Ghana and Uganda’s currencies are seen ceding ground to the dollar over the next week on the back of a typical seasonal surge in demand while Nigeria’s naira is seen holding steady, helped by a central bank intervention.