Decoding the US Regulatory Agenda on Securities Financing, Collateral and Leverage

Finadium
July 2015

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US financial market regulation is a critical input to how financial markets worldwide operate. Already, rules like the Liquidity Coverage Ratio and the Supplementary Leverage Ratio have made their way into financial institution decision- making, resulting in restructurings and heightened volatility in markets including US Treasuries. There is little question that the intended and unintended consequences of regulation are reshaping the markets.

In this report, Finadium reviews the next phases of US financial regulation in securities finance, collateral and leverage as identified by regulators and market participants. The result is a synopsis for financial market professionals looking to understand how the upcoming wave of regulatory decision-making will affect their businesses. We also provide insight into the drivers of new regulation and how those drivers are already changing as market realities unfold. Financial regulations have the power to create new winners and losers; securities finance, collateral and leverage are no exception.

This report is part of the Finadium Executive Briefing series, providing briefings and analysis to the financial markets industry.

This report is 19 pages with 4 exhibits.

TABLE OF CONTENTS
■ Executive Summary

■ The Pace of Regulatory Change
– Regulatory Milestones and Implementation

■ Key Regulatory Themes for 2015-2016

■ Regulation vs. Financial Innovation: Four Areas to Watch

■ About the Author

■ About Finadium