Posts by Josh Galper

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AcadiaSoft and BNY Mellon deliver all-in-one collateral workflow to clients

September 19, 2019

AcadiaSoft, BNY Mellon

AcadiaSoft Inc., the leading industry provider of risk and collateral management services for the non-cleared derivatives community, today announced a new initiative with BNY Mellon that will allow buy-side market…

Fed to offer another $75 billion in repo on Friday Sept 20 2019

September 19, 2019

Federal Reserve, Liquidity, Repo

In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

Fed sees demand for $83.75 billion in O/N repo on Thursday; accepts $75 billion

September 19, 2019

Federal Reserve, Liquidity, Repo

Source: https://apps.newyorkfed.org/markets/autorates/temp

SEC Publishes Recordkeeping and Reporting Requirements for Security-Based Swap Dealers, Major Security-Based Swap Participants, and Broker-Dealers

September 19, 2019

sec, securities-based swaps

The Securities and Exchange Commission today announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers by adopting a package of rules and rule…

Bloomberg: Deutsche Bank Sells Equity Derivatives to Goldman, Barclays

September 19, 2019

Barclays, Deutsche Bank, equity derivatives, Goldman Sachs, Morgan Stanley

Deutsche Bank AG completed the first in a series of auctions of equities-trading assets as the German lender exits the business after years of underperformance. The portfolios of equity derivatives,…

Insight Investment money fund clears repo trade at LCH RepoClear

September 19, 2019

Insight Investment, LCH, LCH RepoClear, Repo

INSIGHT MONEY MARKET FUND ACCESSES FRESH SOURCE OF LIQUIDITY Cleared trade via a central counterparty reflects structural development within liquidity market A money market fund managed by Insight Investment, a…

AFX hits record volume on AMERIBOR, adds Giancarlo to board

September 19, 2019

AFX, Ameribor

CHICAGO – September 18, 2019 — The American Financial Exchange (AFX), electronic exchange for direct interbank lending and borrowing for American financial institutions, announced a record volume trading day on…

Fed will conduct a third repo injection up to $75 billion on Thursday September 19, 2019

September 18, 2019

Federal Reserve, Liquidity, Repo

In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

Fed lowers Interest on Excess Reserves to 1.8%

September 18, 2019

Federal Reserve, IOER

The Board of Governors of the Federal Reserve System voted unanimously to lower the interest rate paid on required and excess reserve balances to 1.80 percent, effective September 19, 2019.…

CME Group Announces SOFR Futures Trading Volume and Open Interest Records

September 18, 2019

CME, SOFR, SOFR futures

CME Group, the world’s leading and most diverse derivatives marketplace, today announced Secured Overnight Financing Rate (SOFR) futures reached a daily volume record of 152,649 contracts traded on Sept. 17,…

Repo in the news this week – summary of articles

September 18, 2019

WSJ: Fed Injects More Into Money Markets After Banks Bid Heavily, Sept 18, 2019 The Federal Reserve Bank of New York saw huge demand from banks Wednesday morning, as they…

BIS releases triennial Central Bank Survey of Foreign Exchange and Over-the-counter (OTC) derivatives markets for 2019

September 18, 2019

BIS, FX, OTC derivatives, triennial central bank survey

The BIS Triennial Central Bank Survey is the most comprehensive source of information on the size and structure of global foreign exchange (FX) and over-the-counter (OTC) derivatives markets. The Triennial…

US repo markets show capacity limits – what happens next (Premium)

September 18, 2019

Interest rates, Repo, SOFR, US

Federal Reserve, Repo, topstory, treasuries, US Treasury

US repo markets this week have shown what happens when they reach capacity, and the Federal Reserve has shown phase 1 of what it will try to do to maintain…

Fed prepares second major injection of liquidity into US repo markets

September 17, 2019

Fed, Liquidity, Repo

In accordance with the FOMC Directive issued July 31, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

Federated: Spike in repo rate a technical event

September 17, 2019

Federated, Liquidity, Repo

Susan Hill, CFA Senior Vice President Senior Portfolio Manager, Head of Government Liquidity Group When rates on the typically steady overnight repurchase agreements behave like the stock market, as they…

Fed injects up to $75 billion into repo market to maintain the federal funds rate

September 17, 2019

Federal Reserve, Repo

In accordance with the FOMC Directive issued July 31, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

SEC charges Prudential Financial units with seclending-related tax benefits at the expense of advised funds

September 17, 2019

Prudential, sec, Securities Lending

The Securities and Exchange Commission today charged two subsidiaries of Prudential Financial Inc. with failing to disclose conflicts of interest and making misleading disclosures to the boards for 94 funds…

Bloomberg Launches Equity Benchmarks

September 17, 2019

Bloomberg, equity benchmarks, ESG

Bloomberg U.S. Large Cap Index is the Basis for Co-Branded ESG Index Family Bloomberg today announced that it now offers U.S. equity benchmark capabilities. The equity offering includes the Bloomberg…

Finadium: Collateral Management Technology Vendors in 2019: A Finadium Survey

September 17, 2019

Collateral Management, Technology

collateral management, Finadium, SFTR, technology, topstory, UMR

Finadium has conducted its sixth industry-wide survey of collateral management technology vendors, providing a comparative look at the development of this sector, and focusing exclusively on vendors providing collateral technology…

TreasurySpring raises £2m to fuel growth

September 16, 2019

TreasurySpring, the London-based financial technology company today announced the closing of its latest capital raise, securing £2m of investment in a round that was led by ETFS Capital, with participation…

ISDA publishes Legal Guidelines for Smart Derivatives Contracts: Collateral

September 12, 2019

derivatives, ISDA, smart contracts

ISDA has published the third in a series of legal guidelines for smart derivatives contracts, intended to explain the core principles of ISDA collateral documentation and raise awareness among technology…

Zero Hash Announces Successful Launch of Settlement for Derivatives

September 11, 2019

derivatives, settlement, Zero Hash

Zero Hash, a digital asset and fiat currency custodian, calculation agent and settlement service, today announced the launch of support for derivatives, providing participants the ability to settle bilateral derivative…

Reserve Bank of India working with regulators to develop fixed income securities lending

September 11, 2019

India, RBI, Securities Lending

20th FIMMDA – PDAI Annual Conference Shri B.P Kanungo, Deputy Governor, Reserve Bank of India – August 31, 2019 – Moscow IRDA, SEBI and PFRDA too could help development of…

ISLA publishes report on LEIs and SFTR

September 10, 2019

ISLA, LEI, SFTR

The International Securities Lending Association has today published a paper titled ‘The LEI & Securities Finance Transaction Regulation (SFTR)’ Against the backdrop of the Securities Financing Transaction Regulation (SFTR) that…

Eurex Clearing launches incentive program to support Brexit preparations

September 9, 2019

Brexit, Eurex Clearing, OTC derivatives

Eurex Clearing introduces a CCP Switch Incentive Program until year-end 2019 to support market participants in migrating OTC interest rate derivatives positions. Regulators and central banks have recently renewed their…

Monday News Update, risk edition: bond markets, possible negative US rates, trading and more (Premium)

September 9, 2019

ETFs, Interest rates, Investments, Risk Management

bond markets, Brexit, Emerging Markets, ETFs, negative rates, topstory, US interest rates

There’s heady news in the markets these days. We’ve been paying attention to how investors should think about risk in positioning global bonds, the possibility of negative US interest rates,…

Market Media: State Street presents on AI in securities lending

September 8, 2019

artificial intelligence, machine learning, State Street

State Street and its research arm State Street Associates have collaborated to optimize their securities lending business through the deployment of an internally developed machine learning model. The project’s goal…

QS Holdco asks judge to allow lawsuit to proceed against prime brokers

September 6, 2019

lawsuit, prime brokers, QS Holdco

Plaintiff QS Holdco, Inc. respectfully submits this Memorandum of Law in support of its motion pursuant to Rules 59(e) and 60 of the Federal Rules of Civil Procedure (the “Rules”)…

Federal Reserve Board invites public comment on proposal to establish capital requirements for certain insurance companies supervised by the Board

September 6, 2019

Federal Reserve, insurance companies

The Federal Reserve Board on Friday invited public comment on a proposal to establish capital requirements for certain insurance companies supervised by the Board. The proposal builds on existing state-based…

Bank of England: Securities settlement fails network and buy-in strategies

September 6, 2019

Bank of England, buy-ins, settlement fails

Staff Working Paper No. 821 By Pedro Gurrola-Perez, Jieshuang He and Gary Harper In the context of securities settlement, a trade is said to fail if on the settlement date…

OCC settlements on regulatory matters with SEC and CFTC

September 5, 2019

CFTC, OCC, sec

OCC, the world’s largest equity derivatives clearing organization, released the below statement in response to a settlement reached with the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity…

Finadium launches database on hedge fund/prime broker relationships; invites beta testers for online access

September 4, 2019

Hedge Funds, Prime Brokerage

hedge funds, Prime Brokerage, prime brokers, topstory

Finadium has created a database of US hedge fund/prime brokerage relationships based on SEC ADV filings. The database will be available to Finadium clients as part of the standard research…

ISLA publishes Regulatory and Policy Maker Guide to Securities Lending, in association with Finadium

September 4, 2019

Finadium, ISLA, Regulatory, Securities Lending

The International Securities Lending Association is delighted to announce the publication of its new Regulator & Policy Maker Guide to Securities Lending. Produced in association with Finadium, a consultancy focused on…

CME reports record trading in SOFR futures as OI surpasses $960 billion notional

September 4, 2019

CME, SOFR, SOFR futures

Open interest in CME SOFR futures surged to a record 283K contracts ($960B notional) in August, on record ADV of 40K contracts: More than 15 new firms began trading in August,…

CME Group to Launch SOFR Options on January 6, 2020

September 4, 2019

CME, SOFR, SOFR options

CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it will launch options on Three-Month Secured Overnight Financing Rate (SOFR) futures starting on Jan. 6, 2020,…

ISDA Create to Add New Custody Function for Initial Margin

September 4, 2019

BNY Mellon, Custody, ISDA Create

The International Swaps and Derivatives Association, Inc. (ISDA) and Linklaters have announced the addition of a new custody function on ISDA Create’s initial margin (IM) offering, which will enable users…

Fed blog: The Transmission of Monetary Policy and the Sophistication of Money Market Fund Investors

September 4, 2019

Federal Reserve, Liberty Street Economics, money market funds

In December 2015, the Federal Reserve tightened monetary policy for the first time in almost ten years and, over the following three years, it raised interest rates eight more times,…

BIS: Spillovers of funding dry ups

September 4, 2019

BIS, funding, Repo

BIS Working Papers No 810 04 September 2019 by Iñaki Aldasoro, Florian Balke, Andreas Barth and Egemen Eren Focus Dry-ups in funding markets often lead to financial crises, with adverse macroeconomic consequences.…

OCC seclending CCP volume declined 5.53% in August 2019 year over year

September 3, 2019

CCP, OCC, Securities Lending

OCC’s securities lending CCP activity was down 5.53 percent in new loans from August 2018 with 111,375 transactions last month. Year-to-date stock loan activity has decreased 2.56 percent from 2018…

ESMA strengthens liquidity stress tests for investment funds

September 3, 2019

AIFs, ESMA, liquidity stress tests, UCITS

The European Securities and Markets Authority (ESMA) has published its final guidance regarding liquidity stress tests of investment funds – applicable to both Alternative Investment Funds (AIFs) and Undertakings for…

Really, what happens if US dealers run out of balance sheet for funding? (Premium)

September 3, 2019

Repo

Balance sheet, Repo, topstory, US Treasuries

It’s time to rethink some long-held assumptions in financial markets. Continuously rising US Treasury issuance will have its natural consequences: it’s not possible for funding markets to take on a limitless…

ECB’s Yves Mersch on why cryptocurrency Libra may be a new kind of money

September 2, 2019

cryptocurrencies, ECB, Libra

Yves Mersch: Money and private currencies – reflections on Libra Speech by Mr Yves Mersch, Member of the Executive Board of the European Central Bank, at the the ESCB Legal…

Baton Systems Secures $12 Million Series A led by Trinity Ventures

September 2, 2019

Baton Systems, distributed ledger

Baton Systems (“Baton”), a provider of high-speed, blockchain-inspired, bank-to-bank payments infrastructure, has raised more than $12 million to dramatically increase processing times and efficiencies within the $2 trillion global payments…

CNA: BNP Paribas plans bid for Deutsche Bank’s equity derivatives

August 30, 2019

BNPP, Deutsche Bank, equity derivatives

French lender BNP Paribas plans to bid for Deutsche Bank’s equity derivatives book and is hopeful it can beat off rival bidders to secure a deal in the next few…

ISLA’s 11th securities lending market report notes uncertainty and faster pace of regulatory change

August 30, 2019

ISLA, Securities Lending

We are delighted to announce the release of the 11th Edition of the ISLA Securities Lending Market Report. The report continues to provide a platform for us all to better understand…

BIS: Bank intermediation activity in a low interest rate environment

August 30, 2019

bank profitability, BIS, interest rates

BIS Working Papers No 807 30 August 2019 by Michael Brei, Claudio Borio and Leonardo Gambacorta Focus This paper examines how the long period of low interest rates has affected the business…

HSBC facilitates first T+3 trade in China Interbank Bond Market

August 29, 2019

China, HSBC

HSBC announces that it has successfully facilitated the first T+3 trade in the China Interbank Bond Market (CIBM), right after the official announcement to extend bond settlement cycle for overseas…

BIS: Geographic spread of currency trading: the renminbi and other EM currencies

August 28, 2019

Bank for International Settlements, Renminbi, reserve currency