Top Headlines

Will the FX Industry Have to Argue the Case for Pre-Hedging in Yet Another Court Room? – Profit & Loss

Re-reading documents filed by the latest class action over market manipulation, my conclusion is that the FX industry is going to have to argue the case for pre-hedging in yet another court room (actually court rooms – as we reported almost two weeks ago when the news broke, a European lawsuit is also planned).

Draft Brexit Deal Ends Britain’s Easy Access to EU Financial Markets – Reuters

The United Kingdom and the European Union have agreed a deal that will give London’s vast financial centre only a basic level of access to the bloc’s markets after Brexit.

Sterling Plunges as Brexit Minister Raab Resigns – Reuters

The pound plunged against both the euro and the dollar on Thursday after British Brexit minister Dominic Raab resigned in protest at Prime Minister Theresa May’s draft deal for leaving the European Union.

Ex-Deutsche Bank Traders Hit Back at US Prosecutors – Financial Times (subscription)

Two former Deutsche Bank traders have accused US prosecutors of a “cynical” attempt to reframe spoofing charges against them as a way to avoid evidence helpful to their case.

Regulatory News

FSB: Libor ‘Will Not Be Sustainable’ After 2021 – Euromoney

It is one thing to develop alternative benchmarks to Libor, but, even as the clock is ticking, it is quite another to get issuers to use them.

For CFTC, 2018 Was One of the ‘Most Vigorous’ in Its History – Law360

The US Commodity Futures Trading Commission broke new ground in its enforcement this past year, with the largest number of market manipulation cases ever brought.

Monetary Authority of Singapore Proposes Fast-Track ‘Sandbox Express’ – Finextra

The aim of the pre-defined sandbox is to enable firms to embark on experiments more quickly, says MAS, without needing to go through the existing bespoke sandbox application and approval process.

Lobbing Out the Clobs? – (subscription)

As more prop traders go bilateral, what does it say about – and mean for – market liquidity?

Crypto News

Bitcoin Suffers Biggest Fall Since March – Financial Times (subscription)

Bitcoin slipped to a 13-month low, falling below the $6,000-level and posting its largest drop since March with other cryptocurrencies also heading south.

Binance: The Misunderstood Master Plan to Rule the Crypto Universe That Just Might Work – The Block

Over the second half of 2017, Binance became the largest crypto exchange in the world and is on track to bring in $500 million in profit this year.

Crytptocurrency Exchange Mint Licences Integral FX Platform – Finextra

Mint Exchange has licensed the Integral platform to power the first institutional grade cryptocurrency exchange.

Trader Gets 15 Months for Cryptocurrency Fraud – Bloomberg

A trader was sentenced to 15 months in prison for misappropriating $1.1 million in Bitcoin and Litecoin. Prosecutors say Joseph Kim stole $600,000 in the cryptocurrency from his firm, Consolidated Trading, to cover personal losses trading crypto futures on foreign exchanges.

Crypto Investment Bank Fincross Plans Global Rollout – Global Investor (subscription)

Fincross International is seeking to raise $12 million to fuel growth.

Company News

BNY Mellon’s Edwards Exits for FX Settlement Firm – Global Investor (subscription)

Katherine Woodrow will replace John Edwards as EMEA COO for BNY Mellon’s Markets unit.

Opposition Mounts as CME Looks to Slim Down its Board – Crain’s Chicago Business

The exchange has proposed axing six board director seats elected by traders, but its old guard objects to the move.

High-Speed Trader Virtu Financial Aims to Prove It’s No ‘Bogeyman’ – Bloomberg

The ITG deal, valued at about $1 billion, has caused some to worry that Virtu, one of modern finance’s most successful traders, will snoop on its soon-to-be clients’ orders, leveraging that knowledge to place winning trades before they do.

Tradeweb Chief Takes Stock of Electronic Bond Trading Revolution – Financial News (subscription)

Lee Olesky and his rivals have helped move fixed income trading away from the phone but there is ample room for growth.

LCH SwapAgent Completes its First Swaption Trade – Global Investor (subscription)

Nomura and Deutsche Bank were the first to enter a swaption trade into SwapAgent.

Market Savvy

Markets Danger Zone: 5 Things Investors Need to Watch – Financial Times (subscription)

As financial markets enter a more challenging phase, investors and analysts are looking for signs that can indicate financial stress. Here are some of the main contenders.

Choosing Between Emerging Market Bonds is a Bet on the Dollar – Financial Times (subscription)

Investors in emerging market bonds sold in local currencies take risks their dollar bond-favouring peers prefer to avoid.

Australian Dollar Climbs on Solid Employment Gains – Financial Times (subscription)

The Australian dollar jumped on Thursday after data showed the number of full-time hires in October had more than doubled from the previous month.