Liquidnet: Swiss Exchange a winner after EU equivalence loss
The loss of equivalence to Swiss markets on July 1st and the introduction of the Swiss Ordinance have already led to a change in liquidity formation and the immediate winner…
Read More Fed blog: How Do Large Banks Manage Their Cash?
As the aggregate supply of reserves shrinks and large banks implement liquidity regulations, they may follow a variety of liquidity management strategies depending on their business models and the interest…
Read More EFAMA: liquidity concerns about ETFs are misplaced
EFAMA recently finalised a Comment Paper in response to the ECB’s November 2018 findings around liquidity and counterparty risks in ETFs, included in the ECB’s semi-annual Financial Stability Review. While…
Read More Global Investor: LCH to end Euro repo trading in London after Paris switch
Euro repo and bond trades will be completely withdrawn from London-based LCH Ltd at the start of next year. The full article is available at https://www.globalinvestormagazine.com/articles/3692895/lch-to-end-euro-repo-trading-in-london-after-paris-switch
Read More Bank of England’s Hauser says bigger central bank balance sheets are here to stay
Waiting for the exit: QT and the Bank of England’s long-term balance sheet Speech given by Andrew Hauser, Executive Director, Markets At the European Bank for Reconstruction and Development, London,…
Read More Regulation Asia: HKMA Asks Banks to Prepare Systems for Revised Leverage Ratio
Both the revised leverage ratio treatment of client cleared derivatives and the revised disclosure requirements will come into effect in Hong Kong on 1 January 2022, in line with the…
Read More Fed blog: Large Bank Cash Balances and Liquidity Regulations
The Federal Open Market Committee (FOMC) has recently communicated its aim to continue implementing monetary policy in a regime that maintains an ample supply of reserves, though with a significantly…
Read More SIFMA issues SOFR primer
The publication of LIBOR is not guaranteed beyond 2021. To ensure financial stability, a significant, coordinated effort is underway to transition to alternative interest rate benchmarks. With an estimated $200…
Read More Get the weekly SFM update – our July 12 newsletter is online
Headlines: Finadium: Declining Securities Finance Volumes: Pricing, Problems and Solutions; How collateral harmonization is progressing in Europe (Premium); Cyber report: what’s happening for security in finance; Understanding Deutsche Bank’s “radical…
Read More India’s YES Bank makes blockchain commercial paper issuance
Financial technology solutions provider MonetaGo has today announced that a commercial paper has been digitally issued in Asia for the first time using blockchain technology. MonetaGo completed this transaction through…
Read More ENSO launches financing replication and reconciliation tools
ENSO provides effective Financing Replication and Reconciliation tools that consolidate financing data across prime brokers. The services highlight the drivers of costs as well as potential avenues to reduce manual…
Read More Fed releases updated Statement on IOSCO Compliance for the EFFR, OBFR, and Treasury Repo Reference Rates
The Federal Reserve Bank of New York today updated its Statement of Compliance with the IOSCO Principles for Financial Benchmarks (the Principles) to cover the inclusion of “selected deposit” transactions…
Read More TreasurySpring launches Fixed-Term Fund (FTF) platform
TreasurySpring, the London-based financial technology company today announced the launch of its Fixed-Term Fund (FTF) platform. A Fixed-Term Fund is a completely new financial instrument, conceived, designed and built by…
Read More Intraday liquidity management: from cost discussion to revenue opportunity
By optimizing their management of intraday liquidity, financial institutions can avoid the hidden costs associated with not managing and forecasting their cash and liquidity requirements correctly. Why maintain unnecessarily high…
Read More CFTC says no documentation required on initial margin until the threshold amount exceeds $50 million
The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a Staff Advisory noting that CFTC’s uncleared swap margin rules do not require documentation…
Read More US regulators simplify capital rules for smaller banks and exempt community banks from the Volcker Rule
The federal bank regulatory agencies today issued a final rule that reduces regulatory burden by simplifying several requirements in the agencies’ regulatory capital rules. The simplifications in the final rule…
Read More Fed blog: Untangling the U.S. Dollar Funding Market
From Policy Rates to Market Rates: Untangling the U.S. Dollar Funding Market Gara Afonso, Fabiola Ravazzolo, and Alessandro Zori How do changes in the rate that the Federal Reserve pays…
Read More Delta One equity finance platform announces launch
The first day in operation following its wide release saw a total of $3.4 Billion notional reversal and conversion interests available for system matching spread across 117 individual equity securities.…
Read More Tradeweb repo ADV at $213.1 billion in June 2019
In the past year, Tradeweb has made significant progress in growing electronic trading of bilateral repos by helping to preserve relationships between dealers and clients while reducing the inefficiencies and…
Read More Fed’s Powell: stress tests need to keep up with bank evolution
Welcoming Remarks (via prerecorded video) Chair Jerome H. Powell At “Stress Testing: A Discussion and Review,” a research conference at the Federal Reserve Bank of Boston, Boston, Massachusetts Good morning…
Read More ICMA: 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 at length by the ICMA ERCC and the ERCC Operations Group. The ERCC has agreed on the…
Read More TriOptima Record Compression Shrinks Notional in Eurex Clearing
TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it has reduced notional outstanding at Eurex Clearing by 26% following a…
Read More Financial Stability Institute: Proportionality under Pillar 2 of the Basel framework
Pillar 2 of the Basel framework aims to ensure that the minimum Pillar 1 capital and liquidity requirements are better aligned with a bank’s overall risk profile. Pillar 2 accommodates…
Read More EU CRD5/CRR2 to apply from June 28 2021
EU Capital Requirements Directive V and Capital Requirements Regulation II Finalized Shearman and Sterling The legislative amendments to the EU’s Capital Requirements Regulation and the Capital Requirements Directive, widely referred…
Read More IHS Markit says Q2 2019 seclending revenues down 10% from last three years’ Q2 averages
Global securities lending revenues for Q2 2019 totalled $2.6bn, 10% below the average Q2 revenue over the last three years. There were some bright spots, with an increase in special…
Read More Australia, Canada and India get top grades from Basel for NSFR and LEX
The Basel Committee on Banking Supervision today published assessment reports on the implementation of the Net Stable Funding Ratio (NSFR) and the large exposures framework (LEX) in Australia (NSFR, LEX), Canada (NSFR, LEX) and India (NSFR, LEX).…
Read More Get the weekly SFM update – our July 5 newsletter is online
Headlines: GLMX on why expand its repo platform in Europe (Premium); Can Japan get out of its deflationary spiral? (Premium); Winners and losers from the Basel Committee’s Leverage Ratio changes…
Read More Saudi bourse publishes securities lending market consultations
As part of plans to develop the capital markets infrastructure in Saudi Arabia, the Saudi Stock Exchange (Tadawul) has recently undertaken two concurrent consultations that look at formalizing rules for…
Read More ISLA decomplexifies corporate actions in preparation for SFTR
ISLA is developing a pan-industry consensus of booking processes to overcome the as yet unfathomed regulatory reporting obstacles. The Association has held four working group meetings involving 25 member firms…
Read More Traiana launches post-trade automation service for equity swaps
Traiana, the infrastructure service for trade lifecycle and risk management solutions, announced that it has launched a new service to fully automate the post-trade lifecycle management of the multi-trillion dollar…
Read More SEC and CFTC propose lower margin rules for security futures
The Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) (collectively, the “Commissions”) are proposing amendments to regulations that establish minimum customer margin requirements for security futures.…
Read More EBA sees European bank Basel III shortfall at EUR 135.1 billion
The European Banking Authority (EBA) presented today, during a public hearing, the results of its Basel III implementation assessment, which includes a quantitative impact study (QIS) based on data from…
Read More FSB publishes review of TLAC Standard
The Financial Stability Board (FSB) today published a technical review of the implementation of the Total Loss-Absorbing Capacity (TLAC) Standard for Global Systemically Important Banks (G-SIBs) in resolution. When fully…
Read More OCC seclending CCP volumes down 10.6% in June 2019 year over year
Securities Lending: OCC’s securities lending CCP activity was down 10.6 percent in new loans from June 2018 with 106,566 transactions last month. Year-to-date stock loan activity has decreased 3.2 percent…
Read More BIS to set up Innovation Hub for central banks
The Board of the Bank for International Settlements (BIS) today approved the establishment of a BIS Innovation Hub to foster international collaboration on innovative financial technology within the central banking…
Read More Get the weekly SFM update – our June 28 newsletter is online
Headlines: SecFinTech — GLMX is a repo platform speaking Google’s language (Premium); SGX launches Total Return Futures: why Asia, why now and what’s next (Premium); What’s next as the SEC…
Read More Bloomberg: Democrats Back Wall Street Push to Free Up $40 Billion in Margin
A group of House Democrats is pressing bank regulators to roll back a rule that forces the biggest Wall Street firms to set aside as much as $40 billion as…
Read More Fed passes 18 banks on CCAR, Credit Suisse to address “limited weaknesses”
The nation’s largest banks have strong capital levels and virtually all are now meeting supervisory expectations for capital planning, the Federal Reserve Board on Thursday announced following its annual examination.…
Read More Risk: LCH and Eurex create fix for floating repo’s Eonia problem
Clearing houses LCH and Eurex will settle floating rate repos in two stages come October, as the industry adjusts to the next-day calculation of the European Central Bank’s new euro…
Read More State Street Settles SEC Charges for Adding Undisclosed Markups on Client Expenses
The Securities and Exchange Commission today announced that State Street Bank and Trust Company has agreed to pay over $88 million to settle charges for overcharging mutual funds and other…
Read More Basel Committee finalizes Leverage Ratio revisions for client margin and window-dressing for SFTs
The Basel Committee on Banking Supervision today released a revised treatment of client cleared derivatives for purposes of the leverage ratio. The Basel Committee also issued a revision to the…
Read More Bank of England: discussion paper on risk management approach to collateral referencing LIBOR for use in the Sterling Monetary Framework
The purpose of this Discussion Paper is to seek initial feedback on the Bank of England’s (the Bank) approach to the risk management of collateral referencing LIBOR for use in…
Read More BNYM: Sponsored Repos are Surging
The volume of sponsored repo activity in the clearinghouse was $230 billion as of December 31, according to Fixed Income Clearing Corporation (FICC), which is part of settlement giant Depository…
Read More FCA confirms recognition of the FX Global and UK Money Markets Codes
Following consultation feedback, the Financial Conduct Authority (FCA) is today confirming that it is recognising the following voluntary market codes of best practice under its codes recognition scheme: FX Global…
Read More Basel Committee: The costs and benefits of bank capital – a review of the literature
In 2010, the Basel Committee on Banking Supervision published an assessment of the long-term economic impact (LEI) of stronger capital and liquidity requirements (BCBS (2010)). This paper considers this assessment…
Read More IHS Markit and Cappitech integrate on SFTR reporting
Cappitech, a leading provider of regulatory reporting and intelligence solutions for the financial services industry and IHS Markit, a world leader in critical information, analytics and solutions, today announced an…
Read More DTCC Sponsored Service Achieves Key Milestone in Treasury Market Clearing with Citadel Activity
Transactions completed by Citadel in both cash and repo highlight the potential of the Sponsored Service to significantly increase centrally cleared US Treasury activity, reducing the risks of bilateral clearing…
Read More ARRC Releases Preliminary Report on Potential Interdealer Cross-Currency Swap Market Conventions
The Alternative Reference Rates Committee (ARRC) today released a report detailing preliminary considerations for the use of risk-free rates (RFRs) in interdealer cross-currency swaps. Cross-currency swaps are actively used by…
Read More IOSCO examines liquidity in corporate bond markets under stressed conditions
The Board of the International Organization of Securities Commissions today published a report that examines the factors affecting liquidity in secondary corporate bond markets under stressed conditions. The report, prepared…
Read More Reuters: China improves short-selling mechanism ahead of tech board launch
China’s securities regulator on Friday published guidelines on mutual funds participating in the securities lending business, as part of efforts to improve China’s short-selling mechanism. Under the business, mutual funds…
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