Top Headlines

Want to Opt Out of BARX Last Look Settlement? Your Deadline is March 30 – Profit & Loss

Participants in a class action lawsuit that alleges Barclays abused last look on its proprietary trading platform BARX have until March 30 2017 to opt out of the proposed $50 million settlement.

ASX Wins Race to Administer Key Australian Benchmark – Profit & Loss

The Australian Financial Markets Association has announced that it will transfer administration of the BBSW (bank bill swap rate) benchmark rate to ASX.

Dollar Dips Before US Jobs Data; Eyes on Italy’s Vote – Reuters

The dollar was on course for its first weekly fall in four weeks against the euro and a basket of currencies, with investors trimming bets against the single currency before US jobs numbers and Italy’s constitutional referendum.

Imagining a Dystopia of the Dying Dollar – Wall Street Journal (subscription)

But alternatives to the greenback are hard to identify.

Pound Surges After UK Minister Opens Door to EU access – Financial Times (subscription)

The pound climbed to its highest level against the euro in almost three months after a rare public comment from the government on its strategy for leaving the EU, adding further momentum to the currency’s November rally.

• Sterling Makes Best Run vs Euro in Nine Months as Hard Brexit Fears Ease – Reuters
• Pound Performing Solidly in Early Trade – Financial Times (subscription)

Euro Adds Gains After France’s Hollande Says Won’t Seek Re-Election – Reuters

The euro rose to session highs against the dollar after French President Francois Hollande said he would not seek a second term in office, a surprise move seen paving an easier path for conservative Francois Fillon to win the post in 2017.

Mexico Loses Central Bank Chief to BIS as Trump Risk Looms – Bloomberg

Mexico central bank Governor Agustin Carstens is resigning his post next year to run the Bank for International Settlements, leaving the nation without its best-known policy maker amid new economic challenges from the Trump administration.

PBoC Sets Renminbi Trading Band Stronger as Dollar Weakens – Financial Times (subscription)

The People’s Bank of China set the trading band for the renminbi against the dollar stronger for a fourth session this week, despite a softening greenback and amid intensifying efforts to stem capital flight.

Zloty Hits Five-Month Low Ahead of S&P Ratings Review – Reuters

The zloty hit a five-month low due to fears that Standard & Poor’s may downgrade Poland’s debt rating, while long-dated government bonds remained under pressure in Central Europe.

Lira Stuck Near Record Lows in Post-Opec Slump – Financial Times (subscription)

The lira is struggling to stage much of a comeback after slumping yesterday, remaining stuck near record lows.

Rule Breakers Face Bigger Possible Fines from CME Group – Reuters

CME Group plans to strengthen efforts to deter wrongdoing in markets by raising the maximum possible fine for rule breakers, the company said, further raising the stakes for rogue traders following the first US criminal convictions for the manipulative practice known as spoofing.

Court Rules IRS Can Seek Information on Bitcoin Customers – Wall Street Journal (subscription)

A federal court ruled that the Internal Revenue Service can serve digital-currency- services company Coinbase with a “John Doe summons” that seeks detailed information on its customers’ transactions from 2013 to 2015.

Don’t Expect a Rerun of the Asian Financial Crisis – The Conversation

Some columnists are even drawing comparisons to the currency meltdown that preceded the 1997-1998 Asian Financial Crisis.

Latin America Braces for FX Rollercoaster in Trump’s First Days: Poll – Reuters

Uncertainty over the path of Latin American currencies has spiked following the surprise election of Donald Trump to the White House, with chances of more sudden losses against the US dollar in coming months, a Reuters poll showed.

Has the Blockchain Hype Finally Peaked? – Financial Times (subscription)

Sober reality bites on automating networks of trust on which modern finance rests.

Regulatory News

EU Finalizes MiFID II Rulebook with Derivatives Trading Cap – Wall Street Journal (subscription)

The announcement marks the completion of the overhaul of EU market regulation.

Trump’s Plans to Dismantle Dodd-Frank Unlikely to be Realised, Says Tabb Group – The Trade

Over 70% of provisions under Dodd-Frank have already been approved in six-year process of implementation.

Joe Biden to Make Last-Ditch Defense of Financial Regulations – Wall Street Journal (subscription)

Vice President Biden will appear with former Federal Reserve Chairman Paul Volcker at Georgetown University on Monday.

CME Clearing Europe Approved as Clearing Organisation in US – The Trade

CME Clearing Europe has become the latest European clearing house to win approval from the US Commodity Futures Trading Commission.

Company News

Harrington Leaves Bloomberg – Profit & Loss

George Harrington has left his role as the head of Bloomberg’s fixed income, currency and commodity (FICC) trading business.

TMX, Velocity Trade Ally for FX Data, Analytics – Waters Technology (subscription)

Canadian exchange operator TMX Group has partnered with Velocity Trade, a global provider of equity and foreign exchange trading services, to enhance the foreign exchange capabilities of its TMX Analytics product suite.

Credit Suisse Likes Emerging Markets for 2017 Investment Opportunities. Here’s Why – CNBC

Relative political stability, economic resurgence in some of the larger nations and the emergence of reform-oriented governments make emerging economies an attractive investment target for next year, according to Swiss investment bank Credit Suisse.

Market Savvy

Global Stocks, Dollar Ease Before Payrolls Report, Italian Vote – Reuters

Global stocks, oil and the dollar eased with investors took a cautious stance before Italy’s referendum on constitutional reform and US payrolls data later in the day, which may cement the case for a Federal Reserve rate increase.

Fears of Fed Tightening Weigh on Emerging Stocks, Currencies – Reuters

Emerging equities fell more than one percent and currencies weakened after strong US data raised the spectre of faster US Federal Reserve rate rises, while South African markets were jittery before a sovereign debt ratings review.

Best Pound/Rupee Exchange Rate Since September 2016 on OPEC Oil Rally – Exchange Rates

The British pound to Indian rupee exchange rate held near its best levels since September.