Collateral Management

eSecLending, Finadium Investors in Securities Lending, FISL, topstory

Collateral Management, Finadium Event, Repo, Securities Lending

We spoke with Peter Bassler and Simon Lee at eSecLending to hear why their firm is sponsoring Finadium’s Investors in Securities Lending Conference this April: “coming to this event will…

“Fire Buys of Central Bank Collateral Assets” charts the cost of eligible securities in the market

February 23, 2017

Collateral Management, Europe, Investments

Bundesbank, Central Banks, collateral, Fire Buys, fire sales, topstory

Collateral Management, Risk Management

A recent research paper by the Bundesbank, “Fire Buys of Central Bank Collateral Assets,” shows the pricing and risk impact to securities from large moves by Central Banks to purchase…

New collateral regimes create new systematic risks through the collateral markets

February 22, 2017

Tobias Duchscherer

collateral, risk, topstory

Regulation has introduced a new element of systemic risk in the collateral markets centered on non-bank institutions. Since 2008, financial regulators have used mandatory collateral buffers to increase systemic stability…

Final customer collateral segregation rules published by Canadian Securities Administrators (CSA)

February 21, 2017

Collateral Management, Derivatives, Re-Hypothecation, Regulatory

Canada, collateral, collateral segregation, CSA, Regulatory, topstory

The Canadian Securities Administrators (CSA) has issued final rules around the segregation of customer collateral used to secure or margin cleared derivatives transactions. The rules apply to all registered clearing…

Variation Margin – long anticipated, finally arrives March 1, 2017 – maybe

February 14, 2017

Basel III, Collateral Management, Derivatives, OTC Derivatives Clearing, Regulatory, Risk Management

collateral, Non-Cleared OTC Derivatives, topstory, Variation Margin

Variation Margin (VM) rules for non-cleared OTC derivatives go into effect on March 1, 2017. Maybe. Unless you are in Singapore, Hong Kong, Australia… and several other jurisdictions. As of…

J.P. Morgan’s Paul Wilson on why participate in Finadium’s Investors in Securities Lending Conference

February 13, 2017

Collateral Management, Finadium Event, Repo, Securities Lending

FISL, JP Morgan, Paul Wilson, topstory

We asked Paul Wilson of J.P. Morgan why his firm is sponsoring Finadium’s Investors in Securities Lending Conference this April. He says the opportunities are there for clients committed to…

Margin Optimization and the Cost of the Trade

February 9, 2017

CCP, Collateral Management, Derivatives, Technology

CCPs, collateral optimization, Margin, Margin optimization, OTC derivatives, technology, topstory

Banks have largely absorbed the Leverage Ratio and the Liquidity Coverage Ratio and are taking on the next challenge: maximizing their balance sheet efficiency in a return to profitability. One…

How worried should we be about re-hypothecation? Notes on the FSB’s recent report and recommendations

January 30, 2017

Basel III, Collateral Management, Financial Stability Board, Market infrastructure, Re-Hypothecation, Regulatory, Securities Lending, Systemic Risk

Financial Stability Board, Lehman, Rehypothecation, Securities Lending, topstory

Collateral Management, Technology

The subject of re-hypothecation of customer assets by banks and brokers has always been an uncomfortable one. While professionals and regulators have long understood that re-hypothecation is essential to financing…

Towards a Centralised Exchange for Collateral

January 26, 2017

Martin Seagroatt

Broadridge, collateral, collateral exchange, technology, topstory

A number of initiatives to improve the matching of collateral supply with demand have begun to move forward in recent years. However, the system is still fragmented with a lack…

Securities Finance Monitor Magazine Edition 5, our technology special, is now online

January 17, 2017

Asia, Basel III, Collateral Management, Europe, Repo, Securities Lending, Tri-Party Repo, US

Asia, Basel III, collateral management, Dodd-Frank, Europe, Regulation, Repo, Securities Lending, technology, topstory, US

Securities Finance Monitor Magazine Edition 5, our technology special, is now online. Hard copies will be distributed at Deutsche Borse’s Global Funding and Finance Summit and at our upcoming events…

Finadium: Collateral Management in Asia: Survey Results and Country Best Practices

January 16, 2017

Asia, Collateral Management, Regulatory

Asia, banks, cash, collateral management, non-cash, standardized baskets, topstory

Finadium asked market participants about preferences in posting and receiving collateral, the roll out of collateral optimization and their interest in creating a standardized Asian collateral basket across the region.…

Bank repo spreads are widening, but do clients have to pay the bill? Here is the Elixium alternative

January 12, 2017

Stephen Malekian

Collateral Management, Investments, Repo, Technology

Balance sheets, Elixium, Repo, spreads, technology, topstory

Following the crisis, high volume, low margin businesses like repo were unable to meet the return hurdles on a bank’s cost of long term capital, forcing a change in their…

Four emerging tech trends to watch in capital markets (Premium)

January 11, 2017

Big Data, Blockchain, Collateral Management, Dodd-Frank, Market infrastructure, Regulatory, Securities Lending, Settlements, Technology

blockchain, distributed ledger technology, financial technology, fintech, peer to peer, topstory, vendors

We have identified four emerging tech trends in capital markets for 2017 with an emphasis on securities finance and derivatives, but which also impact a broad cross-section of market activity.…

AVM’s Jeff Kidwell on why participate in Finadium’s Investors in Securities Lending Conference

January 9, 2017

Collateral Management, Finadium Event, Repo, Securities Lending

AVM, Finadium, Finadium Investors in Securities Lending, FISL, Kidwell, topstory

We spoke with Jeff Kidwell at AVM Direct Repo to hear why his firm is sponsoring Finadium’s Investors in Securities Lending Conference this April. It all comes down to decision…

Our top stories of 2016

January 3, 2017

Basel III, Collateral Management, Dodd-Frank, Repo, Securities Lending, Technology

Dodd-Frank, GCF, Lehman, Pirum, SFTR, topstory, Transcend Street

2016 was a pretty tumultuous year in financial markets, and securities finance, collateral and derivatives were no exception. Before we get into 2017, with more expected ups and downs to…

AcadiaSoft steps up with ProtoColl acquisition; is this the next Markit? (Premium)

November 22, 2016

Collateral Management, Technology

AcadiaSoft, collateral management, DTCC, OTC derivatives, ProtoColl, topstory

AcadiaSoft announced a major purchase yesterday of DTCC’s ProtoColl solution. This is a big step forward for AcadiaSoft, which only last August 2015 transformed itself from an important technology hub…

Finadium: Survey of Collateral Management Technology Vendors

November 16, 2016

Collateral Management, Technology

collateral management, Finadium Research, Survey, technology, topstory

Finadium has conducted its fourth industry-wide survey of collateral management technology vendors, providing a comparative look at the development of this sector. The survey provides readers with a product summary,…

Europe's buy-side responds to Eurex's ISA Direct Clearing model

October 26, 2016

Paul Amery

CCP, Collateral Management, Europe

buy-side, CME, Direct Clearing, Eurex, ISA Direct, topstory

New membership models for buy-side participants at central derivatives counterparties (CCPs) may help alleviate recent capacity and cost constraints. However, the buy-side still faces an existential choice about its future…

Finadium report: banks say Asia's biggest OTC challenge is margin reform and effective collateral management

October 25, 2016

Asia, Basel III, Collateral Management, Derivatives

Asia, banks, Basel III, OTC derivatives, Regulation, topstory

Finadium has released a new research report, “The Future of Asian OTC Derivatives Markets,” a survey of 13 major bank participants in Hong Kong, Singapore and Australia and other countries…

Under bank capital rules a reduction in US Federal deficit would spell serious trouble

October 17, 2016

Collateral Management, Dodd-Frank, Federal Reserve, Liquidity Management, Market infrastructure, Money Market Funds, Regulatory, Repo, Systemic Risk, US

Federal deficit, Federal Reserve, Liquidity, systemic risk, topstory, US Treasuries

The US Federal deficit has been an absent topic in recent Presidential debates and skirmishes. Certainly it is less enticing to the general populace than the latest scandals and accusations.…

Finadium names Martin Walker Senior Consultant based in London

October 17, 2016

Collateral Management, Derivatives, Europe, Repo, Securities Lending, Technology

Europe, Finadium, London, Martin Walker, topstory

Finadium, the specialist consultancy in securities finance, collateral and derivatives, announced today that Martin Walker has been named Senior Consultant. Based in London, Martin’s background includes roles as a Business…

What we learned last week at Collateral Utilities – London (Premium)

October 11, 2016

Collateral Management, Market infrastructure

collateral utilities, Market infrastructure, topstory

We were pleased to welcome clients and friends to a London event last week on Collateral Utilities: Where Are They Heading. The event was held at Canary Wharf and was…

Do CCPs increase dealer capacity? Sometimes but not always (Premium)

October 5, 2016

CCP, Collateral Management, Derivatives, Market infrastructure, Repo, Securities Lending

bank capital, CCP, collateral, OTC derivatives, Repo, Securities Lending, topstory

Collateral Management, Market infrastructure, Technology

At a recent industry conference, one of the speakers offered the opinion that Central Counterparties (CCPs) increase dealer capacity. Like most broad statements it is generally true but we heard this…

Building Infrastructure for Collateral Optimization

September 29, 2016

Bimal Kadikar

algorithms, Bimal Kadikar, collateral management, collateral optimization, infrastructure, technology, topstory

Collateral optimization remains a pressing topic in financial markets. While institutions have made great progress in figuring out the models they use, accurate data aggregation and working through operational complexities…

The technical details on how direct/peer-to-peer borrowing increases US customer trading leverage (Premium)

September 28, 2016

Cash management, Collateral Management, Hedge Funds, Prime Brokerage, Securities Lending, US

arranged financing, direct, Enhanced leverage, peer to peer, Securities Lending, topstory, US

In this article we look at the benefits a US trading customer gains by borrowing to cover their own short positions. Like Fully Paid Lending, direct borrowing and lending is…

Is Collateral Management 2.0 the right title for the changes we see today?

September 26, 2016

Basel III, Blockchain, Collateral Management, Operations

collateral management, GlobalCollateral, PwC, topstory

Collateral Management, Credit Exposure, Securities Lending

A recent paper produced by DTCC-Euroclear GlobalCollateral and PwC had the compelling title, “Collateral Management 2.0: Preparing for OTC Derivatives Margin Regulation and Beyond.” Reading through, we wondered what parts…

There is Still Significant Money to be Saved in More Efficient Collateral Exposure Management

September 22, 2016

Rajen Sheth

collateral management, exposure management, non-cash, Pirum, Securities Lending, topstory

The securities lending industry is rightly attentive to important issues like collateral optimization and finding the most cost effective use of limited capital. With attention turned towards these larger macro…

Finadium: Update on Direct and Peer to Peer Transactions in Securities Lending and Repo

September 12, 2016

Collateral Management, Hedge Funds, Repo, Securities Lending

direct, Finadium, P2P, peer to peer, topstory

This Finadium Executive Briefing presents the opinions of asset managers on lending to hedge funds and their peer institutions, and provides commentary on the offerings of three large agent lenders…

First day of OTC derivatives initial margin rules sees frozen markets, custody bottlenecks

September 5, 2016

Basel III, Collateral Management, Custodians, Derivatives, IOSCO

CFTC, Custody, Initial Margin, OTC derivatives, topstory

The OTC markets were hit on Thursday by the introduction of new BCBS/IOSCO margin and account segregation rules in selected jurisdictions. This had the impact in some countries of shutting the market…

Help Wanted: Finadium is looking for a Research Analyst

August 31, 2016

CCP, Collateral Management, Prime Brokerage, Regulatory, Repo, Securities Lending

collateral management, Delta One, Finadium, Prime Brokerage, Repo, Securities Lending, topstory

Finadium is looking for a Research Analyst. If you are an entrepreneurial, detailed researcher and have a demonstrated ability to write effectively, you should consider joining the Finadium team. Continue…

Finadium in London Oct 4 – "Collateral Utilities: Where Are They Heading?"

August 31, 2016

Basel III, Collateral Management, Europe, Finadium Event

collateral utilities, Finadium event, London, topstory

Join the conversation! Finadium and DTCC-Euroclear GlobalCollateral Ltd will host a panel and reception on October 4 in Canary Wharf on collateral utilities. Get the details and register here (http://finadium.com/event/collateral-utilities-where-are-they-heading-2/)

Will peer lending and borrowing change equity collateral use in the US? (Premium)

August 30, 2016

Collateral Management, Prime Brokerage, Regulatory, SEC, Securities Lending, US

Collateral upgrade, equity collateral, HQLA, SEC 15c3, topstory

US Broker Dealers currently operate under a distinct disadvantage versus non-US dealers when it comes to capital efficiency. The difference is the use of customer margin securities as collateral for…

What we learned and still want to know from the OFR's new paper on agency securities lending data (Premium)

August 29, 2016

Collateral Management, Securities Lending, US

collateral, non-cash, OFR, Securities Lending, topstory

The US Office of Financial Research is on a roll. Last week they released “A Pilot Survey of Agent Securities Lending Activity,” which contained both some useful data and brought…

Which are less expensive for banks, cleared or non-cleared derivatives trades?

August 3, 2016

Basel III, CCP, Collateral Management, cover 2, cover all, Regulatory

Basel III, bilateral, CCPs, collateral, guarantee funds, netting, OFR, OTC derivatives, topstory

A new paper from the US Office of Financial Research (OFR) has re-opened the debate about whether cleared or non-cleared OTC derivatives will be less expensive for bank balance sheets.…

Finadium and six leading financial institutions announce new Securities Lending conferences for 2017

August 1, 2016

Collateral Management, Europe, Repo, Securities Lending, US

BNY Mellon, Brown Brothers, Citi, collateral management, conferences, eSecLending, Finadium, JP Morgan, Repo, Securities Lending, State Street, topstory

BNY Mellon, Brown Brothers Harriman, Citi, eSecLending, J.P. Morgan and State Street, along with Finadium, the specialist consultancy in securities finance and asset servicing, announce two new securities lending conferences…

A fascinating new paper on Lehman's failure points the blame at politics and Henry Paulson

July 26, 2016

Collateral Management, Federal Reserve, Systemic Risk, US

Federal Reserve, Lehman Brothers, topstory

In what should be required reading for anyone interested in financial history and the Global Financial Crisis of 2008-2009, Professor Laurence Ball of Johns Hopkins University has released “The Fed…

Finadium survey: Asset Managers on Collateral in Securities Finance

July 20, 2016

Collateral Management, Money Market Funds, Repo, Securities Lending

asset managers, collateral management, Executive Briefing, Finadium survey, Money Markets, Repo, Securities Lending, topstory

This report presents the findings of Finadium’s ninth annual asset manager survey on collateral management in securities finance. The report is based on interviews with 30 asset management firms in…

Measuring risk in the sovereign debt market: A Fed paper balances idealism vs. practicality

July 20, 2016

Basel III, Collateral Management, Europe, Federal Reserve, Regulatory, Risk Management, Securities Lending, Systemic Risk

Federal Reserve, Market Risk, sovereign debt;, sovereign risk, topstory

Securities Finance and other forms of OTC derivatives have always had the effect of shifting and “rehypothecating” collateral and credit risk between the parties to the transaction. Some activities, like…

Finadium and Deriv Asia announce consulting and research partnership for Asian clients

July 13, 2016

Asia, Collateral Management

Asia, collateral, Deriv Asia, Finadium, topstory

Singapore-based derivatives and risk consultancy Deriv Asia and US based securities finance researcher and consultant Finadium have agreed to launch a partnership in Asia to provide a joint service offering…

Finadium names Rick Stinchfield Head of Technology and US Brokerage Consulting

July 5, 2016

Collateral Management, Repo, Securities Lending

brokerage, Consulting, Finadium, Stinchfield, technology, topstory

Finadium, the specialist consultancy in securities finance, collateral and asset servicing, announced today that Rick Stinchfield has been named Head of Technology and US Brokerage Consulting. Rick joined Finadium in…

Brexit was not a collateral crisis but you can see one from here (Premium)

July 5, 2016

Bank of England, Collateral Management, Federal Reserve, Repo, Risk Management

Bank of England, Brexit, collateral, Federal Reserve, Repo, risk management, topstory

An upcoming topic of conversation in financial markets is the possibility of a collateral crisis of some kind. Brexit does not represent a collateral crisis but shows us a roadmap…

The bank enterprise model is driving securities finance technology vendor consolidation (Premium)

June 30, 2016

Collateral Management, Market infrastructure, Securities Lending, Technology

collateral management technology, financial technology, technology, topstory, vendors

The enterprise technology and operations model at banks has taken firm root. This is a technology stack composed of combinations of big, deep, core systems and smaller, more nimble applications targeted…

Securities Finance Monitor Magazine Edition 4 is now online

June 29, 2016

Blockchain, Collateral Management, Repo, Securities Lending

Finadium, SFM Magazine, topstory

Securities Finance Monitor Magazine Edition 4 is now online. Hard copies were distributed at ISLA and to our subscribers. Download your free copy here. We welcome your feedback. Continue reading

The collateral consequences of Brexit (Premium)

June 24, 2016

Collateral Management, Europe, Liquidity Management, Regulatory

bank capital, Brexit, collateral, ratings, topstory

The UK’s historic vote to leave the European Union has sent shock waves throughout financial markets. On Friday, the pound started the day down 9%, share prices were down 16%…

Where is FIS in the current wave of securities finance vendor activity? (Premium)

June 22, 2016

Collateral Management, Market infrastructure, Operations, Securities Lending, Technology

collateral management technology, financial technology, technology, topstory, vendors

It is of more than academic interest to reflect on FIS/SunGard’s history in securities finance technology, and how they established the model for what we see happening today with their…

Trends in Non-cash Collateral

June 15, 2016

Collateral Management, Webinars

BNY Mellon, Calypso, collateral, non-cash, Societe Generale, topstory

Click here to view the replay of Trends in Non-cash Collateral, our June 15 2016 webinar, sponsored by BNY Mellon and Calypso Technology.

Regime Change! The democratization of the clearing landscape

June 15, 2016

Michael Cyrus

CCP, Collateral Management, Credit Exposure, Derivatives, Europe, Prime Brokerage, Regulatory

Balance sheet, Clearing, credit intermediation, derivatives, topstory

Banks will see their clearing business become bifurcated by tail–risk and credit intermediation, part of which will stay on their balance sheet, alongside a service and infrastructure piece that will…

Broadridge buys 4Sight: what it means for the market (Premium)

June 14, 2016

Collateral Management, Repo, Securities Lending, Technology

4Sight, Broadridge, collateral management, securities finance, technology, topstory

In a major industry move, Broadridge announced today its acquisition of 4Sight. Following its recent purchase of Anetics, the buy shows Broadridge’s seriousness in deepening its portfolio of securities finance…

Two new BIS papers on collateral – regulators have not yet found the best policy framework

June 13, 2016

Collateral Management, Regulatory, Systemic Risk

BIS, Boissay, collateral, collateral immobility, collateral pyramids, collateral velocity, Cooper, Gorton, Muir, topstory

The Bank for International Settlements recently published two new working papers on collateral. The first compares collateral immobility (or velocity) to a previous regulatory era. The second models how a…

Event recap: Collateral Utilities: Where Are They Heading? (Premium)

June 8, 2016

Collateral Management, Market infrastructure

Barrett, Caruso, collateral utilities, Finadium event, GlobalCollateral, topstory