Collateral Management

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

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

Collateral Management, Europe

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

We are pleased to report on a very successful Finadium annual conference yesterday in New York. With no transit strikes or bad weather in the way, nearly every one of…

The Finadium 2016 Conference is Tuesday March 15

March 11, 2016

Basel III, Blockchain, Collateral Management, Repo, Risk Management, Securities Lending, Technology, Total Return Swaps

Finadium, Finadium Conference, topstory

We are very pleased to report that our annual conference in NYC is right on track for a successful event. With 119 registered delegates and 18 speakers, we expect this…

Banks look to optimize vendors and service providers as well as collateral (Premium)

March 10, 2016

Collateral Management, Europe, Technology

collateral optimization, Euroclear, FIS, outsourcing, topstory, tri-party

When overhauling collateral management systems, choosing vendors requires its very own optimization strategy, said speakers and panelists at a recent London meeting. Internal infrastructure, tri-party agents and third party service…

What would blockchain mean for "cash" and "credit" in funding? (Premium)

March 8, 2016

Richard Stinchfield

Bitcoin, Blockchain, Cash management, CCP, Central Counterparties, Collateral Management, Credit Exposure, Liquidity Management, Risk Management, Securities Lending, Technology

blockchain, cash management, Credit Exposure, credit intermediation, Settlements, topstory

Big Data, Collateral Management, Liquidity Management

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Collateral and Liquidity Data Management: the next big challenge for financial institutions

March 7, 2016

Bimal Kadikar

Big Data, Bimal Kadikar, collateral, Liquidity, topstory, Transcend Street

The problem is well known: financial institutions have data all over the place. Small institutions tend to face straight-forward challenges, while large ones must identify not only where data are…

Banks at AFME: the custody, collateral and settlement revolution will be ledgerized (Premium)

March 3, 2016

Blockchain, Collateral Management, Custodians, Europe, Settlements, Technology

AFME, blockchain, collateral, Custody, settlement, topstory

As a wave of new technologies crashes into traditional business models, banks are asking what needs to be done now and how relevant is it to the business. On the…

US$27 billion in cost from collateral settlement fails? Hmm, let's take a look at that number.

March 2, 2016

Collateral Management, Market infrastructure, Operations, Settlements

collateral, DTCC-Euroclear GlobalCollateral, GlobalCollateral, PwC, settlement fails, topstory

DTCC-Euroclear GlobalCollateral Ltd and PricewaterhouseCoopers recently published a white paper, “Implications of Collateral Settlement Fails.” The paper claims that “the total value of collateral settlements that are expected to fail…

Finadium: The Repo/LIBOR Flip and what it means for the markets

February 25, 2016

Collateral Management, LIBOR, Repo

Finadium, LIBOR, Repo, topstory

A new report from Finadium investigates why the historical repo/LIBOR relationship has reversed, what it means, and who can really get what rate in the open market. Continue reading

There’ll be ‘no hiding’ in era of data transparency and collateral optimization (Premium)

February 25, 2016

Collateral Management, Europe, IOSCO

collateral optimization, CSAs, Data, Europe, non-cleared derivatives margin, topstory, uncleared swaps

Collateral Management, Liquidity Management, Securities Lending

Collateral management is shifting, shaking up business models and relationships. Next to regulation, the foundation underpinning that change is data, and collateral managers want their data platforms to be as…

Resilience and opportunity in the securities lending market

February 24, 2016

Ross Bowman

agency securities lending, BNP Paribas, BNPP, Securities Lending, topstory

Interest rates across Europe are widely expected to stay low for the foreseeable future, with even the possibility of further easing on the horizon, as the ECB asset purchase programmes…

The FSB looks at measuring collateral re-use: we post the important parts

February 23, 2016

Collateral Management, Regulatory

collateral management, collateral velocity, Financial Stability Board, FSB, re-use, Rehypothecation, topstory

The Financial Stability Board released today a preview of an upcoming document on collateral use. The current document, “Transforming Shadow Banking into Resilient Market-based Finance: Possible Measures of Non-Cash Collateral…

Our reading of the ICMA's latest European Repo Survey (Premium)

February 22, 2016

Collateral Management, Europe, Repo, Tri-Party Repo

ERCC, Europe, European repo survey, ICMA, Repo, topstory

ICMA released their latest European Repo Market survey on Feb 11 2016, showing that the EUR 5,607.7 billion market is evolving in some expected and unexpected ways. We read through…

Holding steady in a 'hurry up and wait' environment – an interview with Clearstream (Premium)

February 17, 2016

Collateral Management, Derivatives, Europe, Market infrastructure, Technology, Tri-Party Repo

Clearstream, collateral mobilization, T2S, topstory

Central Securities Depositories (CSDs) are balancing their traditional guardian roles with competitive market dynamics – including a new deal with buy side firms, maintaining friendly relations with custodians, and preparing…

GSF Summit: What the shift to collateral driven markets means for repo (Premium)

February 11, 2016

CCP, Collateral Management, Derivatives, Repo

BNP Paribas, Citigroup, Clearstream GSF, Leverage Ratio, Societe Generale, topstory

Cash has almost become a secondary consideration in the shift to a secured world, and that means collateral is grabbing the steering wheel in driving the market forward. Such a…

4Sight's Jonathan Cooper on cross-product technology integration and margin rules for uncleared derivatives

February 10, 2016

Basel III, Collateral Management, Derivatives, Repo, Securities Lending, Technology

4Sight, Cooper, derivatives, securities finance, technology, topstory

The financing markets are changing, and with that change comes the need for some form of systems overhaul. The big issue going forward, said panelists representing the securities lending market…

Finadium report: ETF Risk in the New Regulatory Environment

February 8, 2016

Collateral Management, Derivatives, Regulatory, Securities Lending

collateral management, derivatives, ETFs, Finadium, Liquidity, Securities Lending, systemic risk, topstory, volatility

A new Finadium report looks at liquidity and operational risk in the ETF market given recent changes in underlying market liquidity and volatility, as well as regulatory concerns about fire-sale…

Finadium’s Big Ideas Quarterly Q1 2016 presentation is now online

February 7, 2016

Basel III, Collateral Management, Derivatives, Repo, Securities Lending

Big Ideas Quarterly, derivatives, Finadium, Regulation, Securities Lending, topstory

The Finadium Big Ideas Quarterly provides a summary of recent research, our upcoming report schedule and useful news. Continue reading

Securities Finance Monitor Magazine Edition 3 (Tech Special) is now online

February 4, 2016

Basel III, Big Data, Blockchain, Collateral Management, Regulatory, Repo, Securities Lending, Technology

Finadium, SFM Magazine, topstory

Securities Finance Monitor Magazine Edition 3, our Technology Special, is now online. Hard copies were distributed at Clearstream GSF and IMN’s US Beneficial Owner Conference. Download your free copy here.…

Securities Lending in 2016: Challenges and Opportunities for Agent Lenders

February 2, 2016

Collateral Management, Securities Lending

agency securities lending, agents, BNP Paribas, Securities Lending, topstory

The nature of agency lending is changing along with financial markets in the post-Global Financial Crisis era. Agent lenders have become more responsive to their clients, as well as to…

Optimizing securities lending collateral management across cash and non-cash

February 1, 2016

Collateral Management, Repo, Securities Lending, Technology

Calypso, collateral management, Direct Borrowing and Lending, non-cash collateral, Securities Lending, technology, topstory

The impact of regulations on the securities lending industry has been frequent and profound, but the market remains vibrant. Volumes decreased in 2015 for the first time since the Global…

GSF Summit kicks off with cautious optimism for the future of securities finance markets (Premium)

January 28, 2016

Collateral Management, Europe, Repo

Clearstream GSF, collateral, IMF, Repo, topstory

The last 20 years of global securities financing were punctuated by crises: Asian, Russian, Long-Term Capital Management, and sub-prime mortgage. At Clearstream’s 20th annual GSF summit, held this week in…

4sight and DerivAsia Webinar Feb 18 – Collateral Management in Asia: The Transition Towards a Holistic Model

January 27, 2016

Lyndsay Rice

Asia, Collateral Management

Asia, collateral management, topstory

Collateral Management for firms trading in Asia is rapidly changing today. Regulatory requirements originating from BCBS-IOSCO are driving regional market participants to consider changing their business models and methodologies along…

2016 collateral tech trends: a view from the buy side (Premium)

January 21, 2016

collateral modelling, complexity, high performance computing, non-cash collateral, topstory

Blockchain, Collateral Management, Derivatives, Liquidity Management, Technology

Buy-side innovation in collateral management continues to be driven by firms’ needs to align with the business, control costs and provide transparency. In an interview with Securities Finance Monitor, Grigorios…

Collateral management news update – vendors, products and events (Premium)

January 20, 2016

Collateral Management

Clearstream, collateral management, Collateralized Commercial Paper, IMN, Repo, topstory

Collateral management has stayed active in the first weeks of 2016. This news update follows innovations in collateralized commercial products and vendor activities in the market. Conference season is gearing…

Finadium announces 2016 annual conference date, releases agenda

January 6, 2016

Blockchain, Central Counterparties, Collateral Management, Delta One, Derivatives, Investments, Liquidity Management, Market infrastructure, Prime Brokerage, Regulatory, Repo, Securities Lending, Technology

conference 2016, Finadium, topstory

Collateral Management, Market infrastructure, Risk Management, Securities Lending

Finadium’s 10th annual conference will be held on March 15, 2016 in New York City. This program features leading participants in the securities finance and collateral management markets and is…

Purpose-for-Purpose (P4P) equity collateral in US markets – moving ahead or marching in place?

December 22, 2015

Richard Stinchfield

cash vs. non-cash, Equity for Equity, P4P, purpose for purpose, topstory

At the October, 2015 Risk Management Association (RMA) Conference on Securities Lending, the topic of non-cash collateral was featured on the agenda in several sessions. While equity collateral – and…

Repo prepares for a ‘scary’ year-end, part 1

December 17, 2015

Collateral Management, Federal Reserve, Regulatory, Repo, Securities Lending

Liquidity, Regulation, Repo, topstory

Market observers are calling foul over the absurdity of collateralized repo getting too expensive, so much so that unsecured liquidity is now cheaper. There are also concerns that a “perfect…

Changes in hedge fund leverage according to IOSCO

December 15, 2015

Collateral Management, Hedge Funds, IOSCO, Regulatory

hedge funds, IOSCO, Leverage, topstory

IOSCO released their third hedge fund survey last week with some expected results and some new information. Most importantly, we have to get used to their definitions of leverage and…

Finadium’s blockchain and collateral IT client webinar presentation (Premium)

December 9, 2015

Blockchain, Collateral Management, Technology

blockchain, collateral management, Finadium, technology, topstory

Finadium clients can access the recorded webinar and PDFed presentation from our December 8, 2015 client webinar on blockchain and collateral management technology. Continue reading

LCR, NSFR, HQLA? The technical reasons for why that FT article was off base

December 8, 2015

Basel III, Collateral Management, Featured, Regulatory, Securities Lending

Basel III, Collateral Transformations, Financial Times, HQLA, LCR, NSFR, Securities Lending, topstory

Following the publication of the FT’s article on November 30, “Regulators’ boost for securities lending has risky implications,” and our reply, “The FT suggests that collateral transformations amount to regulatory…

The big yawn – why a Fed rate hike no longer really matters for cash collateral in securities lending (Premium)

December 7, 2015

Richard Stinchfield

Collateral Management, Federal Reserve, Interest rates, Regulatory, Securities Lending

cash collateral, cash vs. non-cash, fed rate hike, non-cash collateral, topstory

We are staring it down year end and the Fed is gearing for a long-awaited rate hike. Typically, Fed interest rate moves are an Event with a capital “E”. Securities…

“The Ballad of the Repo Trader” by Bloomberg’s Tracy Alloway

December 3, 2015

Basel III, CCP, Central Counterparties, Cleared Interest Rate Swaps, Collateral Management, Derivatives, Dodd-Frank, Featured, Federal Reserve, Lehman, Regulatory, Repo

Bloomberg, Repo, topstory, Tracy Alloway

We couldn’t let the week pass without acknowledging Bloomberg’s November 25th article by Tracy Alloway “The Ballad of the Repo Trader”. Published just before Thanksgiving, we wonder if a lot of people…

Non-cleared margin rules will have serious knock-on effects to securities financing markets

December 2, 2015

Basel III, CCP, Central Counterparties, Collateral Management, Custodians, Derivatives, Dodd-Frank, Featured, Market infrastructure, Regulatory, Repo, Risk Management

ISDA, non-cleared derivatives, PwC, topstory

Late in October, US regulators announced final rules for margining of non-cleared dereivatives. This topic has been controversial since it imposes margin requirements where there often weren’t any before and…

The FT suggests that collateral transformations amount to regulatory arbitrage

December 1, 2015

Basel III, Collateral Management, Featured, Regulatory, Securities Lending, Shadow Banking

Collateral Transformations, FT, LCR, Securities Lending, Shadow Banking, topstory

In a strongly worded article, the Financial Times yesterday came out swinging against collateral transformations. This was a surprise attack against a practice that certainly carries some risk, but is…

Finadium: Survey of Collateral Management Outsourcing Providers

December 1, 2015

Collateral Management, Custodians, Market infrastructure, Operations, Technology

Central Securities Depositories, collateral management, Custodians, Finadium, operations, outsourcing, technology, topstory

collateral management, collateral management systems, collateral management technology, Collateral Optimisation, topstory

Finadium has conducted an industry-wide survey of firms offering services in collateral management for securities and investments. This survey provides readers with a service summary, target clients and level of…

4Sight Collateral Management: Benchmarking Your Systems and Processes

November 19, 2015

Martin Seagroatt

Collateral Management, Derivatives, Liquidity Management, Technology

Collateral management is changing rapidly to meet the demands of the new post-crisis environment. It can be difficult for firms to know where to start when defining a target operating…

Fed Governor Powell on repo CCPs: the opportunities and challenges ahead

November 19, 2015

Federal Reserve, Federal Reserve Governor Powell, topstory

CCP, Central Counterparties, Collateral Management, Dodd-Frank, Featured, Federal Reserve, Hedge Funds, Market infrastructure, Money Market Funds, Regulatory, Repo, Securities Lending, Tri-Party Repo

Earlier this week Fed Governor Jerome Powell gave an interesting speech at the Clearinghouse annual meeting, “Central Clearing in an Interdependent World”, addressing expanding central clearing for repo.Continue reading

Are collateral technology firms competitors or compliments to custodians and other outsourcers? (Premium Content)

November 17, 2015

Collateral Management, Custodians, Technology

collateral management, Custodians, outsourcing, service providers, technology, topstory

We recently completed a survey of collateral management technology providers and will soon publish a similar survey of collateral management service providers. Something that struck us was the points of…

Extending the 48 hour collateral liquidation stay to financing trades: cash lenders won’t be happy

November 12, 2015

Collateral Management, Credit Exposure, Featured, Liquidity Management, Money Market Funds, Repo, Risk Management

collateral liquidation, FDIC, FSB, OLA, safe harbor, topstory

ICMA, FSB, ISDA and Bloomberg are talking about the extension of the 48 hour rule in derivatives – where if a counterparty goes bust, liquidating the collateral is subject to…

Finadium: Balance Sheet Optimization Strategies (Self-Funding) for Hedge Funds and Other Alternative Asset Managers

November 12, 2015

Basel III, Collateral Management, Derivatives, Hedge Funds, Investments, Prime Brokerage, Regulatory, Repo, Securities Lending, Technology

Balance sheet, Finadium, hedge funds, optimization, self-funding, topstory

Finadium has released a new Executive Briefing report on balance sheet optimization strategies for hedge funds. Hedge funds and other alternative asset managers have been hearing about balance sheet optimization,…

Inter-clearer FICC tri-party trading at DTCC will come to an end in July, 2016. Did the Fed just get impatient?

November 11, 2015

CCP, Central Counterparties, Collateral Management, Credit Exposure, Featured, Federal Reserve, Regulatory, Repo, Systemic Risk, Tri-Party Repo

BNY Mellon, FICC, JP Morgan, Repo, topstory, tri-party repo

Last week DTCC made an announcement they would, as of July 15, 2016, no longer support FICC trades that go across clearing banks. The text of the announcement can be…

Finadium client webinar on blockchain and collateral management technology Tuesday December 8

November 10, 2015

Blockchain, Collateral Management, Technology

blockchain, collateral management, technology, topstory

Finadium will hold a webinar for research clients on Tuesday, December 8 at 10AM New York / 15h London / 16h European time. This webinar will present the fast evolution…

An analysis of the BCBS consultation paper “Haircut floors for non-centrally cleared securities financing transactions” (Premium Content)

November 10, 2015

Basel III, Collateral Management, Financial Stability Board, Regulatory, Repo, Securities Lending

BCBS, FSB, Haircuts, Repo, securities financing transactions, Securities Lending, topstory

The Basel Committee on Banking Supervision (BCBS) has released a consultation document that looks to operationalize what we’ve seen previously from the Financial Stability Board on haircuts for Securities Finance…

Event recaps from London and Zurich (Premium Content)

November 9, 2015

Collateral Management, Europe, Featured, Repo, Securities Lending

collateral management, London, Repo, secured funding, Securities Lending, topstory, Zurich

We return to the US this week after two successful events in London and Zurich, covering collateral, funding, securities lending and repo. Here’s what we learned, combining findings from both…

Finadium’s Big Ideas Quarterly Q4 2015 presentation is now online

November 6, 2015

Blockchain, Collateral Management, Prime Brokerage, Repo, Securities Lending

Big Ideas Quarterly, Finadium, topstory

The Finadium Big Ideas Quarterly provides a summary of recent research, our upcoming report schedule and useful news. Continue reading

Finadium: Survey of Technology Vendors in Collateral Management

October 29, 2015

Collateral Management, Technology

collateral management, Finadium, technology, topstory