Collateral Management

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

Lyndsay Rice

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

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

Bitcoin, Blockchain, Cash management, CCP, 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