Collateral Management

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…

Webinar replay: Trends in Non-cash Collateral

June 15, 2016

Collateral Management

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

What a great event in New York City on Monday! We held a panel and reception, “Collateral Utilities: Where Are They Heading,” in partnership with DTCC-Euroclear GlobalCollateral Ltd. The conversation…

Are we close to consolidation in the collateral management technology market? (Premium)

June 1, 2016

Collateral Management, Technology

collateral management, consolidation, mergers, technology, topstory

The news that one of the bigger collateral management technology providers has gone into the red brings up the question: are we near a period of consolidation in the collateral…

We review the OFR’s “A Map of Collateral Uses and Flows.” What is this paper telling us? (Premium)

May 31, 2016

CCP, Collateral Management, US

collateral, funding, OFR, topstory

The Office of Financial Research (OFR) released a white paper last week, “A Map of Collateral Uses and Flows.” This paper, written by Morgan Stanley’s Tom Wipf and Andrea Aguiar;…

Finadium June Events: Collateral Utilities; Trends in Non-cash

May 25, 2016

Collateral Management, Market infrastructure

collateral utilities, events, Finadium, non-cash, topstory

Finadium invites you to two collateral events in June 2016. Collateral Utilities: Where Are They Heading, co-sponsored by DTCC-Euroclear GlobalCollateral Ltd, will be held June 6 in New York from…

CCP collateral holdings of US$650 billion – our analysis on new filings (Premium)

May 25, 2016

CCP, Collateral Management, IOSCO

cash, CCPs, collateral, CPMI-IOSCO, IOSCO, non-cash, topstory

We recently gathered up the latest CCP CPMI-IOSCO quantitative disclosures to see what they told us about CCP collateral holdings at the end of Q4 2015. We found $650 billion…

Our data on securities lending agents' assets on loan (Premium)

May 19, 2016

Collateral Management, Securities Lending

Agent Lenders, assets on loan, Securities Lending, topstory

Following the publication of “Securities Lending Agents on Prime Broker Borrowers: A Finadium Survey,” we received a question about how we calculated the data for changes in agent lender balances…

Lots of new securities finance and collateral consultancies – who will be their clients? (Premium)

May 17, 2016

Collateral Management, Repo, Securities Lending

collateral management, Consulting, securities finance, topstory

We’ve noted with interest recent new securities finance consultancies being launched. Sometimes this presents a competitive challenge to us (we are consultants too), but more than that, we wonder where…

An interview with Bimal Kadikar, CEO of Transcend Street Solutions

May 16, 2016

Big Data, Collateral Management, Derivatives, Liquidity Management, Operations, Technology

Big Data, Bimal Kadikar, collateral management, Liquidity, Margin, technology, topstory, Transcend Street

Transcend Street Solutions is establishing itself as an innovative player in the collateral and liquidity technology space. We spoke with CEO and founder Bimal Kadikar to learn more about what…

Report highlight: securities lending agents on banks sharing balance sheet benefits in loan fees (Premium)

May 12, 2016

Basel III, CCP, Collateral Management, Prime Brokerage, Securities Lending

Agent Lenders, CCPs, prime brokers, Securities Lending, topstory

As banks work to optimize their balance sheets, agent lenders are a source of possible assistance. The conversation is all about collateral and term: what collateral will agents accept on…

Securities Lending Agents on Prime Broker Borrowers: A Finadium Survey

May 11, 2016

CCP, Collateral Management, Securities Lending

Agent Lenders, CCPs, Finadium, prime brokers, Securities Lending, topstory

A new survey from Finadium finds that 89% of securities lending agents say that technology is now an important consideration in who receives securities loans; 78% say they are willing…

What's the story with collateral trading platforms DBV-X and Elixium? (Premium)

May 10, 2016

Collateral Management, Europe, Repo, Risk Management

collateral, DBV-X, Elixium, Repo, topstory, trading, Tradition

Are these platforms a balance sheet play, a technology play or some of both? The last couple of weeks have seen new announcements and rumblings about collateral upgrade or collateral…

Concerns over ABS ratings in peer to peer lending reveal some pretty shadowy banking (Premium)

April 27, 2016

Collateral Management, Derivatives, Securitization, Shadow Banking

ABS, peer lending, peer to peer, Shadow Banking, topstory

We need a new name for non-financial entities that perform the functions of a shadow bank, what are pleasantly referred to as Peer-to-Peer (P2P) lending “clubs”. These clubs are turning around and…

4Sight: Solving Collateral: BCBS IOSCO Uncleared Margin Rules – How to Adapt

April 15, 2016

mstan

Basel III, Collateral Management, Derivatives, IOSCO

4Sight, BCBS IOSCO, collateral management, non-cleared margin, topstory

4Sight offers a complimentary whitepaper on BCBS IOSCO uncleared margin rules and collateral management. Continue reading

Funds Transfer Pricing and the Quest for Term Funding: Working Towards New Solutions

April 13, 2016

Michael Cyrus

CCP, Collateral Management, Repo, Technology

CCPs, collateral optimization, DekaBank, Funds Transfer Pricing, Michael Cyrus, Repo, topstory

Funds Transfer Pricing (FTP) is emerging as not just a nice to have, helpful tool in managing a financial services business, but in some cases has become a regulatory necessity.…

Ethereum: the next thing you need to know in digital currencies (Premium)

March 30, 2016

Bitcoin, Blockchain, Collateral Management, Securitization, Technology

bitcoin, blockchain, collateral, Ethereum, technology, topstory

You understand bitcoin, right? And you’re pretty up to speed on blockchain, especially after reading Finadium’s 2015 research report and attending the Finadium 2016 Conference. Now its time to get…

Finadium report: Opportunities in Cash and Non-cash Collateral for Asset Holders

March 29, 2016

Collateral Management, Derivatives, Investments, Securities Lending

asset holders, cash, Finadium, non-cash, OTC derivatives, Securities Lending, topstory

Collateral Management, Europe

A new research report from Finadium looks at strategic opportunities for asset holders across cash and non-cash collateral. The report considers regulatory and market changes in collateral acceptance, and presents…

Bank collateral managers talk transfer pricing and the central collateral funding desk (Premium)

March 17, 2016

Anna Reitman

central collateral funding desk, collateral optimization, Europe, LCR, Leverage Ratio, topstory, Transfer pricing

With collateral being at the heart of regulatory efforts to reduce complexity, banks find themselves needing to change organizational structures. But how internal desks will ultimately end up designed is…

Finadium 2016 Conference roundup and our presentation slides (Premium)

March 16, 2016

Finadium 2016 Conference, Finadium Conference, topstory

Blockchain, Collateral Management, Prime Brokerage, Repo, Securities Lending, Technology, Total Return Swaps