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…
Read More SEC Adopts Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major Security-Based Swap Participants and Amends the Capital and Segregation Requirements for Broker-Dealers
The Securities and Exchange Commission took another significant step toward establishing the regulatory regime for security-based swap dealers today by adopting a package of rules and rule amendments under Title…
Read More Bank of England working paper: Bank funding costs and capital structure
Staff Working Paper No. 805 By Andrew R Gimber and Aniruddha Rajan If bail-in is credible, risk premia on bank securities should decrease as funding sources junior to and alongside…
Read More Get the weekly SFM update – our June 21 newsletter is online
Headlines: Fintech trends with implications for securities finance and collateral (Premium); The agent lender queue may no longer be in the client’s best interest (Premium); BNYM clears the first Eurex…
Read More Basel Committee seeks to improve Leverage Ratio for margin, Securities Finance Transactions
The Basel Committee on Banking Supervision met in Basel on 19-20 June to discuss a range of policy and supervisory issues, and to take stock of its members’ implementation of…
Read More Calypso and IHS Markit partner on SFTR reporting
Calypso Technology Inc., a leading provider of cross-asset front-to-back technology solutions for financial markets has signed a strategic alliance with pre-eminent business information provider IHS Markit. The aim is to…
Read More ESMA to hold an open hearing July 15 on SFTR reporting, articles 4 and 12
OPEN HEARING ON CONSULTATION ON GUIDELINES FOR REPORTING UNDER ARTICLES 4 AND 12 SFTR 15 July 2019 from 15:00 to 17:00 (Paris Time) ESMA premises in Paris, France Click here…
Read More SEC: Wedbush to Pay More Than $8.1 Million for Improper Handling of ADRs
The Securities and Exchange Commission today announced that Wedbush Securities Inc. will pay more than $8.1 million to settle charges for improper handling of “pre-released” American Depositary Receipts (ADRs). This…
Read More Broadridge Launches SFTR Change Management Service
Broadridge Financial Solutions Inc. (NYSE:BR), a global Fintech leader that is part of the S&P 500® Index, has announced a change management service to help companies design their target operating…
Read More Rabobank, Pirum Systems and IHS Markit complete successful end-to-end test for SFTR reporting with DTCC’s Global Trade Repository
Pirum Systems and IHS Markit have successfully completed a full end-to-end test with Rabobank, including ingestion, enrichment, validation and submission of Securities Financing Transactions under SFTR from trade capture through…
Read More National Bank of Canada Joins EquiLend Ownership Group
National Bank of Canada (NBC) has completed its acquisition of a 10% stake in EquiLend from J.P. Morgan following clearance from EquiLend’s regulators in the United Kingdom, Canada and Ireland.…
Read More SEC: ICBC affiliate to pay more than $42 million for ADR mishandling
The Securities and Exchange Commission today announced that Industrial and Commercial Bank of China Financial Services LLC (ICBCFS), a wholly-owned subsidiary of Industrial and Commercial Bank of China Limited, will…
Read More FT: Deutsche Bank to set up €50bn ‘bad bank’ as part of overhaul
Deutsche Bank is preparing a deep overhaul of its trading operations including the creation of a so-called bad bank to hold tens of billions of euros of assets as chief…
Read More WSJ: Hong Kong’s Clout as a Global Financial Center Clouded by Uncertainty
The controversial prospect of extraditions from Hong Kong to mainland China has thrown fresh doubt on the city’s status as a global financial hub. A bill that would allow alleged…
Read More ISLA publishes Institutional Investor Guide to Securities Lending, in association with Finadium
The International Securities Lending Association is delighted to announce the publication of its new Institutional Investor Guide to Securities Lending. Produced in association with Finadium, a consultancy focused on securities…
Read More The Trade: Barclays to provide US client swaps clearing through Eurex
Barclays has confirmed that it has become the latest investment bank to provide its clients based in the US with access to Eurex for clearing of interest rate swaps. The…
Read More Get the weekly SFM update – our June 14 newsletter is online
Headlines: Finadium: ESG Funds in Securities Lending: A Statistical and Program Analysis; Beyond Meat (BYND) highlights dysfunction in securities finance pricing (Premium); The Powell Put: pros and cons to the…
Read More