Why the Global Trading System is About to Grind to a Halt – Australian Financial Review
The WTO is breaking down and if there’s no US-China trade deal in the next two weeks, there may not be one until after America’s 2020 presidential elections.
What Really Happens to Markets Around Flash Crashes? – Profit & Loss
Several high-profile flash crash episodes have been reported in recent years. Their frequent occurrence has raised concerns around the stability of the market, and has attracted attention from both regulators and market participants alike.
Britain’s Fateful Election Offers No Good Choices – Financial Times
The gulf in trust between the public and the political class has never yawned so wide, yet rarely have Britain’s political leaders seemed so ill-equipped to respond adequately.
- How Britain’s Broken Heartland will Vote – Australian Financial Review
- What Happens if the Conservatives Win the 2019 General Election? – The Times
Trump Upbeat on US-China Talks as Beijing Underscores Tariff-Cut Demands – Reuters
US-China trade talks are “moving right along,” President Donald Trump said, striking an upbeat tone even as Chinese officials held fast to their line that existing tariffs must come off as part of an interim deal to de-escalate the 17-month trade war between the two powers.
Fed Injections are no Lasting Solution for ‘Broken’ Repo Market – Financial News
The Federal Reserve’s ongoing efforts to shore up the short-term “repo” lending markets have begun to rattle some market experts.
Canada’s Trudeau Clears First Hurdle as Opposition Party Offers Support – Reuters
Canadian Prime Minister Justin Trudeau cleared a first hurdle after the leader of the opposition Bloc Quebecois party said he would support the new minority government’s priorities, at least initially.
Asian Governments Step Up Stimulus as Economic Growth Stalls – Bloomberg
Japan’s government announced a stimulus package Thursday worth some 26 trillion yen ($239 billion), with about half coming from government spending. That came a day after Hong Kong announced additional steps to shore up businesses suffering from months of political unrest.
Is There a Paradigm Shift to Futurisation in FX Markets? – Profit & Loss
As foreign exchange markets transition to a cleared environment, Janice Kan, head of markets, equities at SGX, talks about whether the developing opportunities and constraints represent a paradigm shift towards the futurisation of FX.
Regulatory News
EU Regulator Says Mifid II Rules Have Failed on Market Data Costs – Financial Times
European exchanges will face closer monitoring of the prices they charge customers for basic data, after regulators ruled that the Mifid II markets revamp had not delivered on its aim of cutting the costs of trading.
CFTC’s Registration Deficient List Grows to Nearly 150 – CFTC
As part of the US Commodity Futures Trading Commission’s ongoing efforts to help protect Americans from fraud, today the CFTC added 21 unregistered foreign entities to its Registration Deficient List or “RED List,” bringing the total to 146.
EU Takes Action on ‘Too-Big-to-Fail’ Risks in Financial Clearing – Reuters
European Union governments have agreed new rules for handling failures of clearing houses raising the financial burden on them in a rescue, in a move aimed at preventing contagion risk in the global financial system.
ECB Takes Oversight of Big Investment Banks Fleeing Brexit – Reuters
The European Central Bank will start supervising the subsidiaries of several global investment banking giants from next year as they move significant operations to the continent ahead of Brexit, the ECB said.
Crypto News
BIS Wants Central Banks at Centre of Digital Cash Revolution – Bloomberg
Central banks must embrace the revolution under way in digital money to ensure they remain at the heart of the global payments system, according to the head of the Bank of International Settlements.
Kraken Tempts “Bitcoiners of Nordea” with Crypto Company Employment Options – NewsBTC
One of the longest running crypto asset exchange platforms has tried to tempt employees at Nordea bank away from the anti-Bitcoin financial institution.
Crypto Funds are Closing While the Biggest Investors Stand Aside – Bloomberg
“Just wait until institutional investors jump in” has long been a rallying call for the cryptocurrency faithful. It appears they’ll need to keep waiting a little longer, with nearly 70 crypto-focused hedge funds that mostly cater to pensions, family offices and wealthy individuals closing this year, according to San Francisco-based Crypto Fund Research.
Hong Kong Protests Fail to Boost Crypto Adoption – Decrypt
A report claims the unrest in Hong Kong didn’t spark a surge of crypto activity after all.
Company News
EBS, Refinitiv Hit New Low as Primary Venues Confirm Downbeat November – Profit & Loss
Following downbeat reports from other venues earlier this week, the primary FX venues have also released weak volume data for November, with all three of CME, EBS and Refinitiv Matching reporting their lowest ADV for the year to date – the latter two platforms actually hitting their lowest ADV since they started reporting data over a decade ago.
Bloomberg Terminal Shortcut Sent Users to Presidential Campaign Site – Financial Times
Michael Bloomberg’s flagship news and information terminal was promoting the billionaire media mogul’s run for the White House as the company faced questions over how to cover his candidacy.
Soros CIO Puts Conservative Stamp on Fund Built with Bold Bets – Bloomberg
The new head of the legendary asset management shop has pulled back from risk.
Market Savvy
Eurozone Likely Dodged Recession but Growth to Stay Tepid – Reuters
The euro zone economy has avoided a recession, according to a Reuters poll of economists who were reasonably confident of that outcome, but their growth and inflation outlook remains very modest for the coming years.
How the Fed is Prolonging the Trade War and Endangering the World – South China Morning Post
By fuelling a market rally every time talks stall, the Fed has extended the trade war and made the asset bubble bigger. If a crisis erupts outside the US or China, the bubble may burst – with disastrous consequences for the world
Opec and Allies Stumble Towards Deeper Cuts – Financial Times
Talks between world’s top oil producers on extra 500,000 b/d reductions drag into night.
Central Banks Set to Keep Pumping Out Cash Through 2020 – Bloomberg
Major central banks are set to keep pumping money into financial markets and economies next year, although at a slower pace than recently.
For 15 Years Two Currencies Have Outperformed All Others – The Economist
What accounts for the consistent strength of the baht and the shekel?