Top Headlines

Weisberg Departs Thomson Reuters – Profit & Loss

Phil Weisberg, managing director, global head of FX, rates and credit at Thomson Reuters, has left the firm.

Pound Climbs in Role Reversal as US Election Risk Hurts Dollar – Bloomberg

For once, the pound is benefiting from increased political risk.

Will FX Go All or Nothing on the US Election? – Profit & Loss

The good news about the US election is we are once again dealing with a “known-unknown” – we don’t know who will win but we know someone will.

Brexit Seen Dragging US Into USD 533 Trillion Battle for Clearing – Bloomberg

The European Union’s battle over London’s financial services sector risks dragging an unexpected player into the fray: Uncle Sam.

London Will Remain European Financial Centre Post Brexit, Say British Bankers – The Trade

Survey finds 72% of bankers in UK agree London will remain financial centre in Europe in wake of Brexit.

More Mixed News from FX Platforms – Profit & Loss

CME, EBS and FXSpotStream have all released October volume data, and, as was the case with the first group to report, the news is very mixed.

Businesses See Spot FX Volumes Fall 42% in Four Years – FX Week (subscription)

Research by East & Partners shows a decline in contributions to the FX spot market, particularly from Australian firms.

SocGen Boosted by Investment Banking and International Operations – Financial Times (subscription)

Revenue from trading bonds, foreign exchange and commodities jumped 42 per cent to EUR 687 million.

Deutsche Bank Thinks Draghi’s Gone Over to the ‘Dark Side’ – Bloomberg

Chief economist David Folkerts-Landau says ECB has entered new dimension of moral hazard.

Malaysia to Launch Code of Conduct for FX and Money Markets – Profit & Loss

Bank Negara Malaysia is issuing a policy document on a proposed Code of Conduct for Malaysian wholesale financial markets “to uphold professionalism and integrity in the financial markets”.

Egypt Central Bank Devalues Currency by 48 Percent – Al Jazeera

Devaluation of pound meets IMF demand in exchange for USD 13 billion loan over three years to overhaul country’s ailing economy.

Are Investors Missing the Chinese Currency Devaluation? – Real Clear Markets

It’s hunting season on Wall Street and the target is the elusive Black Swan.

What is Zcash Worth? As Price Tops USD 1,000 Traders Remain Unsure – Coin Desk

Days after the launch of Zcash, the cryptocurrency markets are still attempting to value the newly released digital currency.

Bitcoin Price Soars on Its Eighth Birthday – Market Oracle

It has now been eight years since Bitcoin’s initial white paper was posted to the internet.

Regulatory News

City Should Welcome Escape from Burden of EU Rules, Says Report – Financial Times (subscription)

Rather than fearing disruption from Brexit the City should welcome the chance to escape the burden of “excessive” EU rules, according to Barney Reynolds, head of financial services at Shearman & Sterling law firm.

German Financial Watchdog Says Basel IV Draft Bank Rules Unacceptable for Germany – Reuters

A new draft of proposed international bank regulation is unacceptable for Germany because the rules might restrict lending by the country’s banks, the head of Germany’s financial regulatory agency said.

Deutsche Bank Set to be Among Hardest Hit by New Capital Rules – Reuters

Germany’s Deutsche Bank is among roughly a dozen large European lenders that face higher capital requirements when new banking rules come into force in the coming years, several sources familiar with the matter told Reuters.

Swiss Federal Council Calls for Ease of Regulation for FinTech – The Trade

Switzerland is aiming to reduce barriers to market entry for FinTech firms.

Philippines Central Bank Adopts Renminbi as Reserve Asset – FX Week (subscription)

Central bank joins cohort of countries adopting the Chinese currency as a standalone asset.

Company News

FXCM Raises Margin Requirements for Selected FX Pairs Ahead of US Election – Finance Magnates

FXCM has taken precautionary steps in anticipation of unexpected volatility in the markets ahead of the election.

Renminbi’s Share of Payments Rises Slightly in September – FX Week (subscription)

Swift finds 57 countries have crossed the 10% threshold for direct payments in the renminbi.

China’s Official Interbank FX Trading Platform Wants Blockchain to Reshape Market – Finance Magnates

China Foreign Exchange Trade System: “We have noticed that blockchain is an emerging technology with great promise”.

Market Savvy

Super-Carry Goes Ballistic as Ruble’s Not Atrocious – Bloomberg

On the face of it, traders have any number of reasons to sell the ruble following its world-beating gain.

Asia FX Gains on Dollar Amid US Election Jitters – Reuters

Most emerging Asian currencies gained due to a weaker dollar, but the neck-and-neck battle for votes in the US presidential race kept investors on edge and away from riskier assets.

Canadian Dollar Slides Against British Pound as Oil Prices Plummets on Sharp Jump in US Oil Stocks – Exchange Rates

With risk appetite somewhat limited by growing investor jitters, the pound was able to regain ground against the Canadian dollar, benefitting from fresh oil price softness.