Top Headlines 

US Attorney: All Avenues Exhausted for Scott’s Extradition – FX Week (subscription)

Former HSBC trader Stuart Scott has won the right to stay in the UK and avoid extradition to the US to face charges of allegedly manipulating currency prices after the UK Supreme Court denied an appeal request submitted by the US. 

Emerging Markets: Picking the Winners and Losers – Profit & Loss

Rather than moving in a synchronised manner, speakers at the Profit & Loss Forex Network Chicago conference predicted that emerging market performance has become divergent due to idiosyncratic factors within each country.

An Analysis of the 4pm Benchmark Fix Paper – Profit & Loss

Empirically, of course, there is nothing to argue with in this paper, but taking a more subjective stance raises some issues in my mind. In the section on attainment, the paper spends some time highlighting how smaller participants especially cannot attain the Fix, but for the life of me, I don’t understand why that is an issue anyone should be concerned about?

Ex-Citigroup Trader on Trial for FX Rigging Called ‘Golden Boy’ – Bloomberg

A former Citigroup trader accused of rigging the foreign exchange markets was a “golden boy” in demand at the bank for his knowledge of markets and ability to communicate with others, a former colleague said in his defence.

ECB Faces Challenges Over Italy, Brexit – And Its Own Strategy – Financial Times (subscription)

The European Central Bank is facing serious challenges: rising tensions between Brussels and Rome, doubts about monetary policy and worries about Britain crashing out of the EU without a deal.

Regulatory News 

Don’t Bank on Euribor Surviving 2020 – Euromoney

Euribor’s administrator is confident that its reforms to the benchmark will make it eligible to be published and used after the Benchmark Regulation’s transition period ends. But don’t bank on it.

IHS Markit to Mentor Lawmaker Swinburne in Board Diversity Drive – Financial News (subscription)

Leading MEP takes part in programme’s launch to ‘take the next step’ after UK leaves EU, and promote senior roles for women.

FCA to Quiz Pollsters Over Hedge Funds’ Brexit Short Bets – Financial News (subscription)

UK Treasury Committee chair concerned about use of private polls to gain market-sensitive data in 2016 referendum.

Market Data Fight Rages On – Tabb Forum

US equity exchanges’ market data revenues are in the crosshairs. The new SEC administration, with Brett Redfearn as the new director of trading and markets, has taken up the mantle of challenging the exchanges’ market data fees, questioning whether the fees are aligned with the exchanges’ mission of charging fair, reasonable and non-discriminatory rates.

Crypto News

NYDFS Approves Coinbase as Qualified Custodian – Profit & Loss

Coinbase Custody has obtained a license under New York State Banking Law to operate as an independent Qualified Custodian.

Central Banks Go Crypto – The Trade Crypto

Cryptocurrencies have come a long way since their early associations with libertarian aversion to government surveillance. Discussion, if not yet concrete application, of digital currencies has permeated banks and other financial institutions.

Former CFTC Advisor Among Crypto Exchange Seed CX Directors – Global Investor (subscription)

Robert Paul is one of two directors of crypto derivatives marketplace Seed SEF.

Crypto Exchange Coinbase to List Stable Coin Backed by Circle – Bloomberg

Coinbase, one of the biggest US cryptocurrency trading platforms, said it’s joining a consortium, which includes Circle Internet Financial, that is offering a digital token pegged to the value of the US dollar.

Preparing for the New NFA Cryptocurrency Requirements – Law360 (subscription)

The Oct. 31 effective date is fast approaching for the National Futures Association disclosure requirements regarding virtual currency. 

Company News 

The Big Interview: Alan Marquard – The Trade

Chief strategy and development officer at CLS, Alan Marquard, discusses the buy-side’s increasingly active role in FX settlement, the importance of the FX Global Code of Conduct for the industry, and provides an update on CLS’s recent blockchain projects. 

MarketFactory Integrates API with Elysium – Profit & Loss

MarketFactory’s Whisperer is a low-latency API that connects traders to over 80 ECN, bank and non-bank FX venues for market data, trading and market making.  Elysium Technology Group’s Mission Control is a cloud-based enterprise solution that enables FX trading operations to automate and optimise middle and back office functions.

Moex Launches Non-Ferrous Metals Futures After Licensing Success – Global Investor (subscription)

The Moscow exchange licenses non-ferrous futures contracts from LME after success with ICE. 

OCC’s Fennell on Nasdaq Breach, Crypto and ‘Skin in the Game’ (podcast) –

Clearing house is “seriously considering” contributing to own default waterfall.

CME Plans Sweeping Overhaul of Ageing Span Model – (subscription)

New margin calculator will bring futures, options and swaps under single framework. 

Market Savvy 

Sterling Trims Losses After May’s Party Shows Loyalty on Brexit – Reuters

The pound rose above $1.29 on Thursday after a show of support for British Prime Minister Theresa May from her Conservative Party dampened fears of an immediate leadership challenge over her Brexit strategy.

Currencies Steady as Equities Slide; Offshore Yuan Hits 22-Month Low – Reuters

The Japanese yen and Swiss franc gained only briefly on Thursday as currency traders showed little reaction to a wave of selling across stock markets, although China’s offshore yuan hit a 22-month low on worries about an economic slowdown.

Euro Edges Higher as Currency Traders Await ECB Policy Meeting – Financial Times (subscription)

The euro and the pound made tentative moves higher in morning dealings on Thursday as currency traders shifted their focus to the European Central Bank meeting.

Can Russia’s Rouble Swim Against the Falling Tide of EM Currencies? – Euromoney

With new US sanctions looming over Russia and the effects of higher oil prices largely already priced in, will the Russian rouble sink or swim as we approach the end of 2018?