Top Headlines

Why the Bank of England May Move Before the Fed – Bloomberg Signs are clearer in Britain that inflation may soon pick up.

Work Still to be Done on Australian Transformation to OTC Central Clearing – Profit & Loss Whilst a lot has been achieved in the transition to central clearing of OTC derivatives, according to Malcolm Edey, assistant governor (financial system) at the Reserve Bank of Australia, “the work is not yet done”.

Carney Sidesteps “Brexit” Debate – Profit & Loss Bank of England Governor Mark Carney’s speech regarding the economic consequences of the UK’s position within the European Union largely sidestepped the larger debate about the UK’s future in the EU.

Defiant Portugal Shatters the Eurozone’s Political Complacency – Daily Telegraph Brussels faces a second anti-austerity revolt as the Portuguese Left tears up the script and demands the right to govern.

EU’s Top Court Rules That Bitcoin Exchange Is Tax-Free – Bloomberg Bitcoin and other virtual currencies can be exchanged tax free, the EU’s top court ruled on Thursday.

Regulatory News

MiFID II: A Game Changer for the Swaps Market? – Profit & Loss Ask any swaps market participant what their number one priority is right now and you’ll only receive one answer: “MiFID II is the card that’s trumping everything right now.

ISDA to Review Stance on Name Give up – Profit & Loss Following the decision by a group of banks, Markit and ISDA to settle charges they collectively sought to block outside participants from entering the credit default swaps (CDS) market, ISDA is apparently set on reviewing its stance on the controversial name give up model.

WFE Rejects One-Size-Fits-All Approach to CCP Capital – Risk.Net (subscription) Central counterparties should not be forced to implement uniform skin-in-the-game capital requirements, the World Federation of Exchanges says. “Inordinately large, standardized contributions by CCPs may serve to permit clearing members to take on additional risks effectively subsidized by others.

UK Ombudsman Delivers Further Blow to Brokers Over January 15 – Profit & Loss The UK’s financial ombudsman has issued an initial opinion finding that broker CMC Markets was wrong to re-price trades executed in the Swiss franc on January 15.

Company News

Deutsche Bank: Central Bank Interest Rates Haven’t Reached ‘Absolute Zero’ Yet – Bloomberg The German bank’s analysts say that no central bank has cut rates as low as they can go just yet.

Nasdaq’s Greifeld Unveils European Blockchain Initiative – eFinancialNews (subscription) Nasdaq chief executive Bob Greifeld has unveiled the US exchange group’s next blockchain initiative: using the emerging technology for corporate actions services on one of its European exchanges.

Citadel Positions Itself at the Vanguard of Market Change – eFinancialNews (subscription) In becoming the first non-bank member of Swapclear, Citadel Securities (Europe) has signalled that one of the most fundamental structural transformations to come out of the 2008 financial crisis could now not only be irrevocable, but may actually have prompted a power shift away from traditional dealers.

Market Savvy  

Where Have All the Currency CTAs Gone? – Profit & Loss Despite data showing consistently positive performance for FX-focused CTAs, the number of these firms operating in the market continues to decline. What, if not performance, is forcing currency CTAs to close their doors?

China Moves Prompt Traders to Change FX Views – Market Pulse Sustained intervention by China’s central bank and policy changes are prompting traders to change their views and raise year-end targets for the yuan, after its surprise devaluation in August sparked fears the Beijing wanted a sharp fall.

Bad Boy Ruble Turns Star Currency for Fans of Russia Carry Trade – Bloomberg The recovery in Russian asset prices is rekindling interest in what was the world’s top carry trade strategy in the first half, and Citigroup Inc. and Commerzbank AG say there are more gains to come.

Press Releases

Czech Central Bank to Keep FX Commitment at Least Until H2 2016 –Rezabek – Reuters The Czech central bank will keep its weak crown policy in place until at the least the second half of 2016, board member Pavel Rezabek said on Wednesday, reiterating the bank’s stance.

Industry Events

SEFCON VI, 26 October in New York, NY Forex Magnates’ London Summit, 2-3 November in London, UK FIA Expo 2015, 3-5 November, in Chicago, IL Profit & Loss Shanghai, 12 November in Shanghai, China Profit & Loss Singapore, 19 November in Singapore 11th Annual FIA Asia Derivatives Conference, 8-10 December in Singapore