Top Headlines 

US Said to Probe Tullett, BGC, TFS-Icap Over Currency Options – Bloomberg

US authorities are investigating whether middlemen in the $5 trillion-a-day foreign exchange market posted fake bids, rigged auctions and gave confidential information to others who then profited from it, according to people familiar with the situation.

CFTC Drops Deutsche Bank FX Investigation – Profit & Loss

The US Commodity Futures Trading Commission has closed its investigation into Deutsche Bank’s FX business, the bank revealed in its Q3 results.

Market Volatility Has Currency Traders Abandoning a Tool to Stop Losses – Wall Street Journal (subscription)

In sharp swings, automated orders meant to protect against losses are often making them worse.

Currency Markets Aren’t Prepared for a Donald Trump Victory – City AM

We are less than a fortnight away from the culmination of arguably the most divisive US presidential campaign in history and currency markets are currently preparing themselves for another political spasm.

Fund Managers See Clinton Win Strengthening Mexico Peso – Reuters

Mexico’s peso could gain nearly five percent if Hillary Clinton wins the US presidency, according to a Reuters survey of fund managers, even after a significant rally in the currency as polls showed her rival Donald Trump falling behind.

CME Sees Clearing Boost from OTC Collateral Rules – The Trade

CME Group has seen a boost in voluntary clearing in swaptions, FX and equity derivatives following the onset of stricter collateral rules.

UBS Strong Foreign Exchange in Q3 Doesn’t Offset Decline in Equities – Finance Magnates

Personal and corporate banking has delivered the highest quarterly pre-tax profit since 2008.

Notable Downside for British Pound vs Euro and Dollar Ahead – Pound Sterling Live

Citibank are projecting pound sterling to move well below 1.20 against the US dollar and 1.10 against the euro over coming weeks and months.

Citigroup Trading Desk Made $300 Million on Rate Swaps – Bloomberg

A team of Citigroup derivatives traders generated about $300 million of revenue this year, thriving from serving companies and investors trying to anticipate central bank decisions, according to people with direct knowledge of the matter.

The Risks and Benefits of China Weakening Its Currency – BBC

With the current state of the world economy, more uncertainty and a lack of clarity in their currency policy is not what any of us need.

Big Daddy Holds Sway Over Rupee Market Spurring Trader Angst – Bloomberg Rupee swings are among lowest in emerging-market currencies.

Lagarde Says There is a ‘Crisis’ in Egypt’s Currency Market – Bloomberg

IMF Managing Director Christine Lagarde said Egypt is facing a currency crisis that should be tackled based on local circumstances. 

Managed Services in FX: How to Get it Right – Euromoney

When it comes to managed services in FX, there are many flavours on the menu.

Regulatory News

EU Proposes a Phasing in of Some Bank Capital Rules – Reuters

Banks in the European Union will get more time to adjust to new rules aimed at making sure that banks hold enough of a capital cushion against risky lending on their trading books, an EU document showed.

Europe to Detail Final MiFID Rules in Early Nov – FOW (subscription)

The European Commission is set to publish the last two sets of MiFID II technical standards in the first half of November.

ESMA Set to Backtrack on Mandatory Asset Segregation – Risk (subscription)

Maintaining the status quo would avoid disrupting securities financing and collateral reuse.

Company News

Saxo Bank’s FX September Volumes Strike Fresh 2016 Highs – Finance Magnates

Total monthly volume and client collateral deposits reached new 2016 highs in September.

CME Plans First Bitcoin Product for November – FOW (subscription)

The Merc said it will launch its first two bitcoin reference rates on November 13.

SBI to Launch First Bank-Backed Digital Currency Exchange – Coin Desk

A Japanese financial services group is set to launch the first bank-backed digital currency exchange.

Market Savvy 

Dollar Sticks Near Three-Month Highs After Breaking Past JPY 105 – MarketWatch

The yen remained close to it weakest level against the dollar in three months during Asia trade, after a rise in US bond yields and the release of economic data supporting the case for an increase in US interest rates strengthened the greenback overnight.

Canadian Dollar Strengthens as Oil Rallies – Reuters

The Canadian dollar strengthened against its US counterpart as oil rose, while a breakthrough on a free-trade agreement with the European Union improved the longer term outlook for the loonie.

Odds of 2016 Fed Rate Hike to Drive EUR/USD Near-Term Forecasts – Exchange Rates

Despite some less-than-encouraging eurozone data the single currency trended higher as investors anticipate a fresh strengthening in German inflation, especially as confidence in the US Dollar softened.