BIS: Establishing viable capital markets
Report submitted by a Working Group established by the Committee on the Global Financial System The Group was chaired by Viral V Acharya (Reserve Bank of India) and Li Bo…
Read More St. Louis Fed: Should the central bank issue e-money?
Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff…
Read More WSJ: Dollar maintains role as dominant reserve currency
Beijing and Moscow have rarely had more reasons to rue the dollar’s global dominance. Yet changing the status quo will be difficult, and recent efforts to do so have yielded…
Read More Benzinga and Tidal Markets announce launch of a securities lending volatility indicator
Benzinga announced today that it will be teaming up with Tidal Markets, a volatility data provider, to deliver the Securities Lending Volatility Indicator (SLVX). This new product forecasts market volatility…
Read More Bank of England SecLending Committee considers market impact of CSDR
Minutes Securities Lending Committee 20 November 2018 The FCA provided some background and update on the current position with regard to the introduction of CSDR. ICMA presented to the Committee…
Read More Basel Committee completes review of Principles for sound liquidity risk management and supervision
The Basel Committee on Banking Supervision has completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the Sound Principles remain fit…
Read More BofE Securities Lending Committee discussion on technology – September 2018
Minutes Securities Lending Committee 24 September 2018 2. Presentation from HQLAX The intention of HQLAX is to remove the need for settlement of the collateral itself in a transaction. HQLAX…
Read More World Federation of Exchanges responses to Basel Committee’s Leverage Ratio Consultation
The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, has published its response to the Basel Committee on Banking Supervision’sconsultation on the leverage ratio treatment…
Read More IHS Markit and AcadiaSoft to Deliver Integrated Solution Suite for Initial Margin Management
Business information provider IHS Markit (Nasdaq: INFO) today announced an alliance with AcadiaSoft, a provider of margin automation solutions, to connect the firms’ industry leading platforms for managing initial margin.…
Read More Get the weekly SFM update – our January 18 newsletter is online
Headlines: How final are the Basel Committee’s market risk rules?; LIBOR to SOFR basis risk: challenges are defined but the industry needs action plans; Webinar replay and slides for The…
Read More TriOptima Launches triCalculate IM Analytics Tool for Initial Margin Compliance
TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it has launched triCalculate IM Analytics which provides crucial insight into the options for…
Read More ISLA clarifies SFTR launch date of Q2 2020
In relation to a previous ISLA communication on the SFTR reporting RTS, in which we suggested that the Council of the EU had extended the period to scrutinize the relevant…
Read More ICMA: End of 2018 European repo market relatively uneventful
Today ICMA has published a briefing note on the European repo market at 2018 year-end. The note documents and analyses repo market behaviour through 2018 year-end. Compared with the previous…
Read More BIS publishes Minimum capital requirements for market risk
The standard has been revised to address issues that the Basel Committee identified in the course of monitoring the implementation and impact of the framework. This final standard incorporates changes…
Read More OCC Launches Renaissance Initiative to Modernize Technology Infrastructure
To better serve its stakeholders and the users of the U.S. equity options and futures markets, OCC, the world’s largest equity derivatives clearing organization, today announced the Renaissance Initiative, a…
Read More The Hill: Cyberattack on Treasury bonds could be the missing ingredient for next economic crisis
Trust is the fuel that makes the global financial system work — yet thanks to sophisticated operations by foreign government hackers who are increasingly willing to target that system, the…
Read More BIS: On money, debt, trust and central banking
This essay examines in detail the properties of a well functioning monetary system – defined as money plus the mechanisms to execute payments – in both the short and long…
Read More TriOptima Sets New triReduce Record: $250 Trillion Gross Notional Value Compressed at LCH SwapClear During 2018
TriOptima, the leading multilateral compression provider that lowers costs and mitigates risk in OTC markets, today announced that it has set a new record for its triReduce portfolio compression service.…
Read More Charles River and AcadiaSoft team up for margin call automation
Charles River Development, a State Street Company, and AcadiaSoft have announced a business alliance to automate communication of margin calls and collateral estimates between counterparties in the Charles River Investment…
Read More Get the weekly SFM update – our January 11 newsletter is online
Headlines: BIS report: central banks continue to explore their own cryptocurrency issuance; Could Chinese banks become an important liquidity source for Western banks? (Premium); Update on our Frankfurt event, “The…
Read More BoE Consultation Paper: Credit risk mitigation: Eligibility of financial collateral
Overview In this Consultation Paper (CP), the Prudential Regulation Authority (PRA) sets out its proposed changes to Supervisory Statement (SS) 17/13 ‘Credit risk mitigation’ to clarify expectations regarding the eligibility of…
Read More ISLA: European Council extends scrutiny period for SFTR
The European Council has extended the formal scrutiny period of the Reporting Technical Standards (RTS) in respect of the SFTR by three months. In practice, this implies that the scrutiny…
Read More DTCC to provide derivatives trade reporting in Switzerland
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that it has received regulatory approval from the Swiss Financial…
Read More Fed blog: Coming to Terms with Operational Risk
Operational risk is currently a major risk category for U.S. bank holding companies, and it has grown both in dollar terms and relative to other risks in recent years. As…
Read More ETF.com: Get Ready For Zero Fee ETFs
A flat U.S. stock market and losses in the U.S. bond and most international markets mask what has been another impressive year for ETF inflows of approximately $280 billion as…
Read More DataLend: Securities Finance Industry Generated $9.96 Billion in Revenue in 2018
NEW YORK (January 3, 2019)—The global securities finance industry generated just under $9.96 billion in revenue for lenders in 2018, according to market data provider DataLend. It was a record…
Read More OCC seclending CCP activity up 3.9% in Dec 2018 year over year
OCC’s securities lending CCP activity was up 3.9 percent in new loans from December 2017 with 107,214 transactions last month. For the year, stock loan activity increased 17.2 percent from…
Read More US GCF Repo(R) rate hits 5.149% on last day of 2018; tri-party and SOFR up
The US GCF Repo(R) market hit an astounding 5.149% for UST on December 31, 2018, up from 2.551% just the day before. We heard a high point of 6.125% in…
Read More American Financial Exchange (AFX) celebrates third year anniversary with milestones in membership, volume and new products
American Financial Exchange (AFX), a centralized, electronic, self- regulated, fully transparent platform launched in 2015 to directly reflect true unsecured funding costs for a nationally broad base of U.S. banks…
Read More ESMA releases consultation paper on CSDR settlement fails reporting
In order to ensure the consistent application of Article 7(1) of CSDR3 and Article 14 of the Commission Delegated Regulation (EU) 2018/12294, ESMA has decided to issue Guidelines on the…
Read More ICMA ERCC publishes revisions to the Guide to Best Practice in the European Repo Market
ICMA’s European Repo and Collateral Council (ERCC) is publishing revisions to its Guide to Best Practice in the European Repo Market (Guide). Written on the basis of detailed input from…
Read More ECB working paper: Re-use of collateral: leverage, volatility, and welfare
We assess the quantitative implications of collateral re-use on leverage, volatility, and wel- fare within an infinite-horizon asset-pricing model with heterogeneous agents. In our model, the ability of agents to…
Read More Working group on euro risk-free rates seeks market feedback on transition from EONIA to ESTER and ESTER-based term structure methodologies
Private sector working group publishes report on transition from EONIA to ESTER Working group launches consultation on determining ESTER-based term structure methodology as fallback for contracts linked to EURIBOR Market…
Read More BIS: A key currency view of global imbalances
This study divides the world into currency zones according to the co-movement of each currency with the key currencies. The dollar zone groups economies that produce well over half of…
Read More ISDA Publishes Final Results of Benchmark Fallbacks Consultation
The International Swaps and Derivatives Association, Inc. (ISDA) has today published a report summarizing the final results of a consultation on technical issues related to new benchmark fallbacks for derivatives…
Read More Eurex Clearing expands distribution to clients of U.S. clearing members
Eurex Clearing, one of the world’s leading central counterparties, will offer clearing services for swap transactions to clients of futures commission merchants (FCMs) domiciled in the U.S., thus expanding its…
Read More ARRC says $32 billion in SOFR-linked bond issuance to date, SOFR futures on the rise
As of December 12, SOFR cash issuance had reached $31.6 billion outstanding. With another issuance by the Federal Home Loan Bank yesterday, that brings the total to over $35 billion…
Read More US FSOC annual report recommends focus on transitioning off LIBOR and monitoring leveraged loan risk
The Financial Stability Oversight Council (Council) today published its 2018 annual report. The Council’s annual reports describe significant financial market and regulatory developments, potential emerging threats to U.S. financial stability,…
Read More European Commission adopts conditional equivalence for CCPs and CSDs post-Brexit
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE…
Read More BME Clearing clears its first repo trades executed on BrokerTec
BME, through its BME Clearing subsidiary, has cleared its first repo trades executed on the anonymous dealer-to-dealer trading platform BrokerTec, owned by NEX Markets. The clearing of these transactions follows…
Read More LIBOR replacement: FINMA publishes guidance
The UK’s Financial Conduct Authority (FCA) has announced that it no longer intends to support the LIBOR benchmark interest rate from 2021 onwards. Alternative reference rates are therefore currently being…
Read More Bank of England consultations on resolvability assessment framework
The Bank of England (Bank) and Prudential Regulation Authority (PRA) have today published proposals to further protect the economy and taxpayers from bank failure by putting in place the final…
Read More GFMA and ICMA recommend recalibrations and carve-outs in global SFT regulation
The GFMA and ICMA Repo Market Study: Post-Crisis Reforms and the Evolution of the Repo and Broader SFT Markets This report, The GFMA and ICMA Repo Market Study: Post-Crisis Reforms…
Read More BIS: The geography of dollar funding on non-US banks
Where do non-US banks obtain the funding for the large amount of US dollars they lend? Traditionally, their branches and subsidiaries in the United States were a major source of…
Read More BIS: Clearing risks in OTC derivatives markets: the CCP-bank nexus
Systemically important banks and central counterparties (CCPs) interact in highly concentrated over-the-counter (OTC) derivatives markets. We outline the CCP-bank nexus to think about the endogenous interactions between banks and CCPs…
Read More ECB to end Asset Purchase Program in 2018
At today’s meeting the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending…
Read More Get the weekly SFM update – our December 14 newsletter is online
Headlines: The buzz on Total Return Futures (Premium); Finadium’s report on US Repo Market at End of 2018; Are fiduciaries risking litigation by not electing scrip dividends or rights issues?…
Read More Basel Committee seeks to reduce window dressing in the Leverage Ratio
The Basel III leverage ratio standard comprises a 3% minimum level that banks must meet at all times, a buffer for global systemically-important banks and a set of public disclosure…
Read More Euroclear: Asset Managers making securities lending mainstream
While the global securities lending market all but closed in the aftermath of the global financial crisis, the past decade has seen it come back strongly. But according to buy-side…
Read More European Commission adopts SFTR rules
Monitoring of financial stability risks outside the banking sector: Commission adopts package of rules to increase transparency in securities financing markets In an important step towards increasing the transparency of…
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