Financial Stability Board

Three recent publications suggest that the loose path of regulation for hedge fund risk may be coming to a close. One in particular has some sharp teeth; we may see…

The future of global regulatory agencies in an era of fragmentation

October 31, 2019

Basel III, Financial Stability Board, IOSCO, Regulatory

Basel Committee, BCBS, Financial Stability Board, FSB, IOSCO, topstory

The Basel Committee on Banking Supervision (BCBS) is not a regulator – it is set up to produce frameworks that individual jurisdictions then adopt – but even so, its directives…

How many data fields are really needed by regulators to supervise Securities Financing Transactions?

March 8, 2018

Big Data, ESMA, Financial Stability Board, Repo, Securities Lending

Finadium, FSB, reporting, securities financing transactions, SFTR, topstory

It’s widely accepted that the 152 fields designated by the EU’s Securities Financing Transactions Regulation (SFTR) is overkill. In fact, many of these fields don’t currently exist in participant computer…

The FSB pushes hard on making trade reporting operational and legal (Premium)

July 10, 2017

Richard Stinchfield

Derivatives, EMIR, Financial Stability Board, Market infrastructure, OTC Derivatives Clearing, Regulatory, Systemic Risk

Financial Stability Board, legal data, OTC derivatives, Regulatory reform, topstory, trade reporting

The Financial Stability Board (FSB) has been busy, with 10 substantive letters and reports released in the run up to the recent G20 summit. For this article, we took a look…

Thursday Roundup – comedy and good news edition (Premium)

May 25, 2017

Financial Stability Board, Fintech, Market infrastructure, Repo, Securities Lending, Technology, US

DTCC, FICC, fintech, FSB, Pirum, Repo, topstory

From regulatory overreach to forward industry momentum, we found some quality news to dissect in the last week. Here’s our take on the latest from the Financial Stability Board, Reuters,…

Has the Financial Stability Board lost its bite in derivatives and securities finance? (Premium)

March 2, 2017

Basel III, Derivatives, Financial Stability Board, Repo, Securities Lending

derivatives, Financial Stability Board, FSB, securities finance, topstory

With the latest Financial Stability Board (FSB) announcement, we are left wondering if the recommendations from this once influential institution will be a lot less impactful than they used to…

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

January 30, 2017

Richard Stinchfield

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

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

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…

The value of data: Shadow Banking, repo and lending to SMEs (Premium)

September 6, 2016

Big Data, Financial Stability Board, Investments, Money Market Funds, Repo

Financial Stability Board, Repo, Shadow Banking, topstory

Several stories and reports emerged in the last few days that highlight the value of Shadow Banking and securities finance data in the marketplace. While data is always useful, new sources make…

The FSB tackles asset managers offering indemnification as securities lending agents

June 27, 2016

Financial Stability Board, Investments, Securities Lending

asset managers, Financial Stability Board, FSB, Securities Lending, topstory

In their recent consultative document, “Proposed Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities,” the Financial Stability Board included a section on securities lending. The big concern is…

The FSB, shadow banking risks and expanding the regulatory perimeter: will it work? (Premium)

May 26, 2016

Financial Stability Board, Regulatory, Risk Management, Shadow Banking

Financial Stability Board, risk, Shadow Banking, topstory

The Financial Stability Board (FSB) published a new thematic review yesterday of their progress in Shadow Banking regulation. The first “Principle” of the document is to define and update the…

Would ring fencing under Glass Steagall have prevented the 2008 MBS collapse? (Premium)

February 16, 2016

Richard Stinchfield

Dodd-Frank, Financial Stability Board, Glass-Steagall, Regulatory, Securities Lending, Shadow Banking

bank regulation, Dodd-Frank, Glass-Steagal, Shadow Banking, topstory

Last month the Washington Post looked into the contention of the Sanders campaign that Glass Steagall would have prevented commercial banks from crossing the line into the shadow banking realm,…

The CCP skin in the game debate continues: sources say it isn't helpful (Premium)

January 14, 2016

Anna Reitman

CCP, Financial Stability Board, Regulatory

CCPs, Financial Stability Board, recovery, Resolution, skin in the game, topstory

Banks and buy side firms have been calling for an increase to the slice of the risk waterfall stumped up by CCPs. They reckon this would make CCPs more resilient,…

Regulators, please note: the focus on Shadow Banking regulation must be on the smart allowance of risk (Premium Content)

November 23, 2015

Basel III, Dodd-Frank, Federal Reserve, Financial Stability Board, Regulatory, Repo, Securities Lending, Shadow Banking

Federal Reserve, FSB, securities finance transactions, Shadow Banking, Tarullo, topstory

The topic of shadow banking has been in the press lately, driven by the Financial Stability Board’s recent annual Shadow Banking monitoring update. This update was nothing if not full…

More on the SFT stay protocol and the buy-side. Is this Hobson’s Choice?

November 18, 2015

CCP, Derivatives, Dodd-Frank, Europe, Financial Stability Board, Repo, Risk Management, Securities Lending

CCP, Eurex, FICC, OCC, topstory

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The adaptation of the ISDA stay protocol to securities financing trades won’t be welcome news for buy-side participants. Adding a delay before executing a liquidation adds incremental risk, even if it…

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…

CFTC Commissioner Giancarlo places the blame for market illiquidity squarely on regulation

October 28, 2015

Basel III, CFTC, Dodd-Frank, Federal Reserve, Financial Stability Board, Regulatory, Systemic Risk

Giancarlo, ISDA, Liquidity, topstory

CFTC Commissioner Giancarlo, speaking at the 2015 ISDA Annual Pacific Conference, let go a ripping over-the-top condemnation of banking regulations and its impact on market liquidity. He pulled no punches,…

Fed Governor Tarullo speaks on regulating insurers liability sensitive activities, including sec lending, repo, and collateral management

September 30, 2015

Basel III, Collateral Management, Derivatives, Dodd-Frank, Financial Stability Board, Regulatory, Repo, SEC, Securities Lending, Uncategorized

Daniel K. Tarullo, Federal Reserve, insurance regulation, market externalities, systemic risk, TBTF, topstory

The theme this week has been regulators looking beyond the banks for risks to to the financial system. We saw the SEC take aim at mutual funds and ETFs with…

The FSB takes on fund leverage and liquidity

September 29, 2015

Financial Stability Board, Fixed Income, Investments, Liquidity Management, Risk Management, SEC, Securities Lending, Shadow Banking

Financial Stability Board, FSB, fund management, Leverage, Liquidity, Securities Lending, Shadow Banking, topstory

The Financial Stability Board (FSB) issued a press release outlining what they discussed at their Sept. 25th meeting in London. Leverage and liquidity is still on their mind. Securities lending…

The FSB reports on progress in reforming the ‘IBORs

July 15, 2015

Financial Stability Board, LIBOR, Regulatory, Short Term Interest Rate Benchmarks

EURIBOR, FSB, IBOR, LIBOR, RFR, Risk Free Rate, TIBOR, topstory

The FSB published “Progress in Reforming Major Interest Rate Benchmarks Interim Report” on July 9th. We get into some of the detail.Continue reading

Securities Finance Monitor Magazine Edition 1 is now online

We are pleased to announce the launch of Securities Finance Monitor Magazine. Hard copies were distributed at ISLA and to subscribers who completed their registration information. Download your free copy…

Market responses to FSB and IOSCO consultation on non-bank SIFI designations

June 16, 2015

Financial Stability Board, Investments, IOSCO, Regulatory

asset managers, Financial Stability Board, FSB, IOSCO, NBNI G-SIFI, SIFIs, topstory

The Financial Stability Board (FSB) released comment letters last week on the FSB and IOSCO consultative paper, “Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions.” These institutions…

OFR looks at data transparency in securities financing: there is still a lot of work to do

April 28, 2015

Big Data, Dodd-Frank, Federal Reserve, Financial Stability Board, Market infrastructure, Primary Dealers, Repo, Securities Lending

Dodd-Frank 984(b), Legal Entity Identifier, LEI, sec, topstory

The Office of Financial Research (OFR) published a report “Repo and Securities Lending: Improving Transparency with Better Data” (April 23, 2015) written by Viktoria Baklanova. There paper makes some interesting…

Clarifying the WSJ article on seclending and repo term changes (Premium Content)

April 15, 2015

Financial Stability Board, Regulatory, Repo, Securities Lending, Systemic Risk

automatic stays, Financial Stability Board, FSB, OLA, Orderly Liquidation Authority, Repo, Securities Lending, topstory, WSJ

Financial Stability Board, Repo, Securities Lending, Trade Repositories

The Wall Street Journal released an article yesterday, “Regulators Call for Short-Term Loan Changes to Handle ‘Too-Big-to-Fail’“, that may have seemed alarmist. It’s not. Here’s what’s going on. Continue reading

Monday regulatory roundup: asset managers as SIFIs; CCP stress tests; two from the Bank of England (Premium Content)

While some spent the winter hiding under the covers trying to keep warm, regulators clearly had a busy and productive season. This regulatory roundup provides highlights of new and revisited…

Highlights from comment letters: the FSB’s proposal on Trade Repositories in securities finance (Premium Content)

March 5, 2015

Christopher Sappo

comment letters, Financial Stability Board, securities financing transactions, topstory, Trade repositories

The Financial Stability Board has released comment letters on its November 2014 document, “Proposed Standards and Processes for Global Securities Financing Data Collection and Aggregation.” Less technically, this is on…

The FSB looks at their 2015 agenda; they aim to finish what they started

February 11, 2015

Leverage Ratio, topstory, trade reporting, Unique Transaction Identifier, Unique Transaction Identifier and Unique Product Identifier

Basel III, CCP, Cleared Interest Rate Swaps, Derivatives, Financial Stability Board, Market infrastructure, Regulatory, Repo, Risk Management, Trade Repositories

On February 4th, the FSB issued a statement “FSB Chair’s Letter to G20 on Financial Reforms – Finishing the Post-Crisis Agenda and Moving Forward”. There were several interesting areas that…

The FSB’s annual report: how much money is spent on regulation?

February 3, 2015

Financial Stability Board, Regulatory

annual report, Financial Stability Board, FSB, topstory

The Financial Stability Board published their first annual report for the January 2013 to March 2014 period, making the whole thing pretty dated. The contents read like a hit parade…

Highlights from comment letters on the “Regulatory Framework for Haircuts on Non-Centrally Cleared Securities Financing Transactions”

January 7, 2015

Christopher Sappo

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

FSB, Haircuts, Repo, Securities Financing, Securities Lending, topstory

The Financial Stability Board has released 10 comment letters in response to its consultative document, “Regulatory Framework for Haircuts on Non-Centrally Cleared Securities Financing Transactions”, initially published in October 2014.…

Finadium launches Finadium for Investors, a new subscription series

Finadium for Investors is a new service from Finadium designed for asset managers, hedge funds, plan sponsors and other purchasers of bank services, equities and fixed income products. This subscription…

Fed releases request for public comment on regulating GE Capital. These rules will keep GECC busy for a while.

December 2, 2014

Basel III, Dodd-Frank, Federal Reserve, Financial Stability Board, Liquidity Management, Regulatory, Systemic Risk

CCAR, eSLR, Financial Stability Oversight Council, GECC, General Electric Credit Corporation, living will, resolution plan, SIFI, topstory

The Federal Reserve just came out with a request for public comment on the regulation of General Electric Capital Corp (GECC) as a Sifi, “Application of Enhanced Prudential Standards and…

The FSB on securities finance data collection and aggregation: a good start but there are some tough points to resolve

November 17, 2014

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

collateral management, Data, Financial Stability Board, Repo, Securities Lending, topstory

The Financial Stability Board has released a consultative document, “Standards and Processes for Global Securities Financing Data Collection and Aggregation.” Most of this is no surprise and the actual data…

FSB releases report on shadow banking — refining metrics and lower risk numbers

November 4, 2014

Financial Stability Board, Shadow Banking, Systemic Risk

Financial Stability Board, Shadow Banking, topstory

On October 30th the FSB released “Global Shadow Banking Monitoring Report 2014”, their annual examination of the world of shadow banking. Shadow banking is described as “non-bank credit intermediate with…

The FSB widens the net on minimum haircuts

October 15, 2014

Basel III, Derivatives, Financial Stability Board, Regulatory, Repo, Securities Lending, Total Return Swaps

FSB, Minimum Haircuts, topstory