LCH clears first €STR swaps
LCH is first clearing house to offer clearing of Euro-denominated swaps benchmarked to the new reference rate, €STR Launched in response to strong market demand to clear the products Demonstrates…
Read More BIS/G7/IMF: Investigating the impact of global stablecoins
Technological innovation is transforming the provision of financial services and products. Payment services, in particular, have seen significant change in recent years through the introduction of new payment methods, platforms…
Read More Reuters: Wall Street banks see green light from Fed on reserves – sources
Wall Street banks believe they are getting a green light from supervisors to hold more Treasury debt and less cash after last month’s volatility in overnight lending markets, three industry…
Read More Reuters: NY Fed’s Williams says that Standing Repo Facility may not be enough to meet bank liquidity needs
Fed’s Williams: Central bank will adjust response to money market volatility ‘as appropriate’ New York Federal Reserve President John Williams said Thursday the central bank is learning as it works…
Read More Get the weekly SFM update – our October 18 newsletter is online
Top Stories: Rates & Repo 2019: what the buy-side needs to know about UMR; Clients of collateral technology vendors are working to solve new problems; Legacy Trust: from traditional to…
Read More Impact of risk-free rates transition on risk management
A private sector working group on euro risk-free rates issued recommendations to address the impact of euro risk-free rates transition on risk management. The working group on euro risk-free rates,…
Read More Basel Committee reports on Basel III implementation progress
The Basel Committee on Banking Supervision has today issued the Seventeenth progress report on adoption of the Basel regulatory framework. As noted by the Group of Central Bank Governors and…
Read More Bloomberg: Dimon says regulation limited J.P. Morgan from calming repo market
J.P. Morgan had the cash and willingness to calm short-term funding markets when they went haywire in mid-September, but the banking giant said regulations held it back. The firm has…
Read More Natixis, CIB, DBS, and National Bank of Canada among firms in collateral blockchain trial
Blockchain startup Ivno announced the successful completion of the first global token trial on R3’s Corda, hosted on Microsoft Azure. The Ivno Corda Trial was a world first with 28…
Read More FSB reports that OTC derivatives reforms have plateaued
The Financial Stability Board (FSB) published its annual progress report on the implementation of the agreed G20 reforms to over-the-counter (OTC) derivatives markets. Overall there has been limited additional implementation…
Read More London Stock Exchange launches Global Equity Segment for trading in international securities
Global Equity Segment (GES) offers trading in international companies such as Alibaba, Apple and General Motors on London Stock Exchange during London trading hours GES has attracted strong global interest…
Read More Reuters: Bank of China sells first SOFR bonds from Asian private sector
Last week Bank of China sold $350 million in three-year floating rate notes linked to the Secured Overnight Fundraising Rate (SOFR), a relatively new rate published by the New York…
Read More Get the weekly SFM update – our October 11 newsletter is online
Top Stories: The Long and Short of US Prime Brokerage Pricing in 2019; See who is coming to Rates & Repo 2019; DTCC is eliminating settlement failure using automation; Finadium:…
Read More Federal Reserve Board finalizes rules that tailor its regulations for domestic and foreign banks to more closely match their risk profiles
The Federal Reserve Board on Thursday finalized rules that tailor its regulations for domestic and foreign banks to more closely match their risk profiles. The rules reduce compliance requirements for…
Read More Bank of Japan Deputy Governor Masayoshi Amamiya talks up repo as a monetary policy tool
Development of Asia’s Capital Markets: Roles and Challenges Keynote Speech at the ASIFMA Annual Conference 2019 Masayoshi Amamiya Deputy Governor of the Bank of Japan Enhancing the Effectiveness of Monetary…
Read More State Street Launches Direct Access Lending, a Managed Peer-to-Peer Securities Finance Product
State Street Corporation (NYSE: STT) today announced the launch and first securities loan of Direct Access Lending, a securities finance product that enables direct, principal loans between our lending clients…
Read More BIS paper shows broad support for central bank securities lending programs
Excerpts from “Large central bank balance sheets and market functioning“, Bank for International Settlements Markets Committee, Oct 7 2019. Securities lending programmes (SLPs) are a potent and flexible mitigation tool…
Read More IOSCO and BIS report on governance arrangements for critical OTC derivatives data elements
G20 Leaders agreed in 2009 that all over-the-counter (OTC) derivatives contracts should be reported to trade repositories (TRs) as part of their commitment to reforming OTC derivatives markets with the…
Read More US regulators finalize changes to simplify Volcker rule
Five federal financial regulatory agencies on Tuesday announced that they finalized revisions to simplify compliance requirements relating to the “Volcker rule.” By statute, the Volcker rule generally prohibits banking entities…
Read More US Treasury and IRS propose tax relief related to LIBOR transitions
The United States Department of the Treasury and the Internal Revenue Service (IRS) today issued proposed regulations allowing taxpayers to avoid adverse tax consequences from changing the terms of debt,…
Read More Risk: ECB exposes LCR window-dressing
Liquidity rules are being gamed, the European Central Bank (ECB) has found. The supervisor conducted a specialised stress test that found a number of banks have taken steps to make…
Read More ECB finds generally good results in stress test but over reliance on FX swaps
Euro area banks have overall comfortable liquidity positions, but some vulnerabilities require further attention, ECB finds Banks showed adequate liquidity reserves to withstand stress Exercise assessed banks’ ability to handle…
Read More BIS releases reports on unconventional monetary policy tools and the role of central banks and market functioning
The Committee on the Global Financial System (CGFS) and the Markets Committee have published two major reports on the implementation and implications of unconventional monetary policy tools (UMPTs) introduced by…
Read More ESMA publishes final report on CSDR guidelines on standardized procedures and messaging protocols
The European Securities and Markets Authority (ESMA) has today published its final report on the Guidelines on standardised procedures and messaging protocols. The Guidelines aim to clarify the scope of the…
Read More Eurex continues to boost futurization with launch of Equity Total Return Futures
Migration of bilateral negotiated swaps into standardized futures / New functionality to trade baskets of ETRFs / Live since 7 October Eurex has taken a further step towards futurization: On…
Read More RMA creates fintech committee led by State Street and BNY Mellon
RMA FINANCIAL TECHNOLOGY AND AUTOMATION COMMITTEE Mission Guide the financial service industry’s engagement with and adoption of new technologies while acting as an advocate for best practices. The Committee will…
Read More ESMA consults on MiFIR alignment following the introduction of EMIR Refit
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today launched a consultation on possible amendments to the trading obligation under MiFIR following the introduction of…
Read More Get the weekly SFM update – our October 4 newsletter is online
Top Stories: Treasury Collateral Balances Soar; The data show whether the Fed has tamed US repo rates for now (Premium); SFM Magazine, Fall 2019, is now online; Regtech: when AI…
Read More Hazeltree Acquires ENSO Financial, with investment from IHS Markit
Hazeltree, the leading provider of integrated treasury management and portfolio finance solutions, announced today that it has acquired ENSO Financial Analytics (ENSO), a leading provider of portfolio analytics for hedge…
Read More BNY Mellon: signs point to wider adoption of ETF collateral
The market for exchange-traded funds (ETFs) has skyrocketed over the past quarter-century, thanks to the trillions of dollars investors are put¬ting to work in passive, index-tracking strategies. What hasn’t yet…
Read More Hudson Fintech launches repo platform based on video game tech
Hudson Fintech, the London-based technology firm, announced the launch of its front office technology platform for sell-side and buy-side institutions trading in the repo markets. The software captures and displays…
Read More BIS: Fragmentation in global financial markets: good or bad for financial stability?
BIS Working Papers No 81501 October 2019 by Stijn Claessens Focus How does financial market fragmentation relate to financial stability? Does more fragmentation always imply less financial stability? Alternatively, might there be…
Read More Basel Committee says that Group 1 banks are €23.5 billion short for final Basel III minimums
This report presents the results of the Basel Committee’s latest Basel III monitoring exercise, based on data as of 31 December 2018. Through a rigorous reporting process, the Committee regularly…
Read More ECB’s €STR goes live at -0.549
The euro short-term rate (€STR) is published on each TARGET2 business day based on transactions conducted and settled on the previous TARGET2 business day. The ECB published the €STR for…
Read More Reuters: Too big to lend? JPMorgan cash hit Fed limits, roiling U.S. repos
JPMorgan Chase & Co (JPM.N) has become so big that some rival banks and analysts say changes to its $2.7 trillion balance sheet were a factor in a spike last…
Read More OCC securities lending volumes rose 1% in Sept 2019 year over year
OCC’s securities lending CCP activity increased by 1 percent in new loans from September 2018 with 102,863 transactions last month. Year-to-date stock loan activity has decreased 2.21 percent from 2018…
Read More P&I: Natixis Asset Management fined €3 million by AMF for seclending breaches
Natixis Investment Managers International was fined €2 million ($2.5 million) for breaches relating to disclosure of profits from securities financing transactions and the management of conflicts of interest related to…
Read More FT: Hellman & Friedman considers joining battle for stake in Euroclear
Hellman & Friedman, the US buyout group, is exploring a bid to acquire a stake in Euroclear amid growing interest in one of the world’s largest securities depositories from other…
Read More NN publishes on the benefits of collateral management for pension clients
Collateral matters: the new value chain for collateral The increased need for high-quality collateral has transformed the collateral value chain Institutional investors face the challenge of balancing their collateral needs…
Read More BIS: Interest rate spillovers from the United States: expectations, term premia and macro-financial vulnerabilities
BIS Working Papers No 814 27 September 2019 by Aaron Mehrotra, Richhild Moessner and Chang Shu We analyse how movements in the components of sovereign bond yields in the United States affect long-term…
Read More ISLA Publishes Phase 2 of ‘CSDR: Settlement Discipline Impact to Securities Lending
Following on from the initial paper entitled CSDR: Settlement Discipline Impact to Securities Lending – Phase 1: Identifying the Issues, ISLA is delighted to publish Phase 2: Recommendations, Guidance &…
Read More BofE working paper: Liquidity transformation, collateral assets and counterparties
Staff Working Paper No. 830 Liquidity transformation, collateral assets and counterparties Calebe de Roure and Nick McLaren We investigate how counterparties’ characteristics, and the collateral they use, interact with their…
Read More ICMA says settlement of €STR-based repo poses challenges
ICMA issues memorandum on repo market best practice with respect to the transition from EONIA to €STR The practicalities of the EONIA/€STR transition for non-cleared repo market have been discussed…
Read More ECB publishes the Euro money market study 2018
Study shows increased activity in the secured and foreign exchange swaps segments Shows some money market rates moved below deposit facility rate, especially in secured segment First study of euro…
Read More Get the weekly SFM update – our September 27 newsletter is online
Top Stories: Electronic RFQ repo markets and the social quest for liquidity; FISL Europe: securities lending deeply divided between optimism and pessimism; Asset manager thinking on counterparty default indemnification including…
Read More ISLA & Linklaters Publish a Joint Paper on Digitalisation & the Securities Lending Market
The International Securities Lending Association (ISLA) is delighted to announce the publication of a new white paper titled The Future of the Securities Lending Market | An Agenda for Change.…
Read More Finadium Rates & Repo NYC coming November 4: Meet our Speakers
The events of the last week have shown how important it is to understand changing repo market dynamics, including for long-term practitioners. Get ahead of the curve at Rates &…
Read More HQLAx completes demonstration of blockchain securities lending model, plans Nov 2019 launch
With the execution of multiple simulation transactions by several global banks including Commerzbank and ING, HQLAˣ successfully demonstrated its operating model, an innovative blockchain based solution for collateral swaps in…
Read More SIX about to launch custody-agnostic Collateral Cockpit
Collateral Cockpit from SIX will join-up fragmented front and back office systems and provide unparalleled control over collateral management functions. By the end of 2019 SIX will launch a new…
Read More LCH goes live with Taskize for client servicing
Taskize, the inter-company workflow solution for financial services, announced that LCH has deployed the solution for its RepoClear and EquityClear services in its London-based entity. LONDON – ENGLAND, 18 September…
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