Top Headlines

Wall Street Watchdog Becomes Forum to Cut Rules Under Trump – Bloomberg

In its annual report, the Financial Stability Oversight Council for the first time advised agencies to address outdated and overlapping rules that could subject the industry to “increased compliance costs and regulatory burdens.”

Dollar Dips Against Yen on US Tax Reform Wrangling – Reuters

The dollar slipped to a nine-day low against the yen after wrangling in the United States Congress over a bill to change the tax code dented confidence that the reforms would be pushed through in their current state.

Sterling Rises for a Third Day on Brexit Talks Hopes – Reuters

Sterling edged higher for a third consecutive day as investors bought the British currency on some optimism that Brexit negotiations will move to the next stage in January.

Treasury Yields Have Never Been This Negative for Euro Investors – Bloomberg

Strains build in cross-currency basis swap market at year-end.

Hunt for Next Big Asia Currency Trade Lands on Ringgit, Yuan – Bloomberg

Malaysia’s ringgit and China’s yuan are emerging as Asia’s most-promising currencies for fund managers as they look for the best place to put their money in the new year.

CLS Volumes Tick Up in November – Profit & Loss

The average daily volume (ADV) of trades submitted to CLS was $1.677 trillion in November, up 3.8% from the previous month and up 9.2% year-on-year.

Crypto Hedge Funds Are Beating Their Benchmarks – Quartz

Crypto hedge funds have gained 1,641% in the year to November, according to data-tracking firm HFR.

How Brexit Could Trigger Mifid III – Financial News

The advent of Brexit fundamentally challenges the transparency objectives in Mifid II, which in turn may necessitate a speedy rewrite of the rules.

Bitcoin: Too Risky or Too Good to Miss? The Experts Are Divided – Financial Times (subscription)

This year’s stellar gains mask wild swings along the way.

Regulatory News

Fed Backtracks on CCAR Cleared Swaps Exposure – Risk (subscription)

Regulator had also postponed plan to feed cleared client exposure into G-Sib rankings.

EU Shuts Door on Foreign Electronic Access Providers – Risk (subscription)

US FCMs could be barred from providing direct electronic access as member states bow to Esma.

UK Finance Watchdog Head Says No Plans to Push Bitcoin Regulation – Financial Times (subscription)

The head of the UK’s financial regulator has said he currently sees no systemic risk in bitcoin and is not pushing government to make the cryptocurrency part of his remit.

Initial Coin Offerings Surge Past $4 Billion – and Regulators Are Worried – Wall Street Journal (subscription)

Money raised from initial coin offerings has surged past $4 billion for the first time, even as regulators world-wide have escalated warnings about the new form of corporate funding.

Company News

Reuters Enhances MTF Ahead of MiFID II – Profit & Loss

Thomson Reuters has released into production, system enhancements to its Multilateral Trading Facility (MTF) to support FX derivatives trading in compliance with MiFID II regulations.

Goldman Wants a 100% Margin on Some Bitcoin Futures Trades – Bloomberg

Goldman Sachs Group demanded some clients set aside funds equal to the full value of their bitcoin futures trade as a condition for clearing the transaction, according to people familiar with the investments.

LCH and Eurex Extend New Swap VM Treatment – Risk (subscription)

Banks will have more ways to save capital on cleared swaps books in the coming months, as LCH plans to extend settled-to-market (STM) margining to the clients of US clearing members in January, while Eurex makes it available for members’ own trades next week.

Trading Venues Stall on MiFID II Swaps Reporting Utility – International Finance Review

Many large trading venues are yet to sign contracts for a new service that allows them to create International Securities Identification Numbers for over-the-counter derivatives – a crucial step for MiFID II reporting requirements that come into play on January 3.

Eze Software Teams with Wise Trading to Boost FX Capabilities – Waters Technology (subscription)
One asset manager is about to go live on the joint solution, which marks another major partnership by Eze with a third party this year.

Market Savvy 

Turkey’s Currency and Bonds Hit After Modest Rate Rise – Financial Times (subscription)

Turkey’s currency and bonds took a hit after the central bank failed to deliver on what many investors believed was a widely signalled intention to raise interest rates aggressively to bring inflation and the currency under control.

Canadian Dollar Perks as Poloz Says Less Stimulus Needed Over Time – Financial Times (subscription)

The loonie rose 0.8 per cent against the US dollar to C$1.2714 and was poised for its best day in two weeks following Mr Poloz’s remarks in his year-end speech.