Top Headlines

UK Regulators Said to Discuss Brexit Turmoil With Bankers – Bloomberg

The Bank of England and other regulators discussed thepound’s plunge and other market turmoil triggered by resignations from PrimeMinister Theresa May’s government with about 10 City of London institutions onThursday.

HedgeFunds Suffer in October: BarclayHedge – Profit& Loss

Hedge Funds gave up 3.06% in October according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 6.84% decrease in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is down 1.90%, while the S&P has gained 3.01%.

Companies Prepare for Currency Gyrations amid Brexit Turmoil – The Wall Street Journal (subscription)

Executives at British and international companies are bracing for heightened currency volatility triggered by fresh uncertainty surrounding the UK’s departure from the European Union.

Regulatory News

More Work Needed on CCP Resolution Regimes: FSB – Global Investor (subscription)

Authorities must ensure that CCPs do not become a source of systemic risk, the Financial Stability Board says.

Reforming Major InterestRate Benchmarks Progress Report – FSB

This document reports on progress made in implementing the recommendations of the Financial Stability Board report Reforming Major Interest Rate Benchmarks (2014 Report), as well as in an additional stream of work launched by the FSB in 2016 to improve contractual robustness to the risk of major interest rate benchmarks’ discontinuation.

Federal Reserve to Review Strategies on Monetary Policy in 2019 – Financial Times (subscription)

The Federal Reserve will launch a sweeping assessment of its monetary policy tools and the way in which it communicates its decisions in 2019 – a new effort by chairman Jay Powell to boost the transparency and effectiveness of the US central bank.

MiFID II Best Execution Reports Unused – Markets Media

The majority of firms do not plan to use their MiFID II best execution reports internally according to a survey.

CFTC Ramps Up Anti-Spoofing – Markets Media

The CFTC has launched a new task force on spoofing and manipulative trading as well as three others that target virtual currency, insider trading, and Bank Secrecy Act concerns.

Crypto News

Stablecoins are Crypto Sector’s Next Big Bet – Financial Times (subscription)

‘Hybrid’ cryptocurrencies are often pegged to real assets, including fiat currencies.

Cryptos Are ‘Evil Spawn’ of the Crisis for ECB’s Coeure – Bloomberg

Benoit Coeure has a bone to pick with Bitcoin. “Bitcoinwas an extremely clever idea. Sadly, not every clever idea is a good idea,”the European Central Bank Executive Boardmember said at the Bank for International Settlements inBasel.

France Hopes to Lure Crypto-Issuers with Gallic Stamp of Approval – Reuters

With hundreds of cryptocurrencies being issued every month, countries face a choice: ban them, leave them unregulated, or come up with rules to tame them.

There is a Better Way to Supervise Crypto Assets – Financial News (subscription)

There is a debate about whether assets such as bitcoin should be regulated by industry or market regulators – but perhaps it should be a partnership.

Custody Seen as Crypto’s Next Major Battleground –Waters Technology (subscription)

Although institutional interest in cryptocurrency trading has grown, the development of the custody space, in particular, is crucial for its next phase of evolution.

Company News

Refinitiv Signs Öhman – Profit & Loss

Refinitiv has signed an agreement with Nordic investment management firm E. Öhman J: or Fonder (Öhman) to deliver an end-to-end workflow solution for its investment management business.  

Credit Suisse Weighs Hundreds of Job Cuts to Reduce Costs – Bloomberg

The dismissals could start as soon as this year and help the bank achieve its 2019 expense targets. The bank’s International Wealth Management business and Swiss Universal Bank may be among the businesses affected by the cuts.

Bank of China and Deutsche Bank Open Singapore Innovation Labs – Finextra

Singapore’s status as a top fintech hub has been boosted by the news that Bank of China and Deutsche Bank have both opened innovation labs on the island.

LCH Gets Japan FX Clearing Approval; Clears First Swaption – Profit & Loss

LCH has received approval for an extension to its clearing licence from the Japanese Financial Services Agency. The licence extension was granted on 31 October 2018 and enables LCH’s ForexClear service to clear NDFs on behalf of banks and clients based in Japan.

Third Firm Joins Race to Solve IM ‘Big Bang’ – (subscription)

Initially a race between two rival groups, a third firm – margin utility AcadiaSoft – has now thrown its hat in the ring. All three are trying to avert a documentation crunch in 2020, when an estimated 1,000 firms will be caught by the swaps market’s new margining regime for non-cleared trades. 

Market Savvy

Sterling Bounces as PM Clings to Brexit Deal After Resignations – Reuters

The pound rebounded slightly on Friday on reports that a leading eurosceptic minister would not follow other Brexiteers in quitting the British government and as Prime Minister Theresa May struck a defiant tone despite strong opposition to her Brexit deal.

MorganStanley Says Dollar Bull Run Has Ended, Time to Sell – Bloomberg

“We believe the USD has reached its peak at around current levels,” Morgan Stanley’s global head of FX strategy Hans Redeker wrote in a note. “The USD may weaken as credit spreads widen, equity prices fall, and sovereign bond yields also begin falling amid disinflationary pressure and falling oil prices.”

CEECurrencies Reverse Firming on Brexit Twists – Reuters

Central European currencies reversed early gains on Friday as sterling and the euro retreated after a report that British lawmakers planned to bring a vote of no confidence in Prime Minister Theresa May. That overshadowed speculation that Polish central bank (NBP) Governor Adam Glapinski might quit.