News and Notes

ESMA issues positive opinion on short selling ban extensions

ISLA publish 2020 legal opinions for the GMSLA

Eurex STS secures German banking licence for Buy-in Agent service ahead of CSDR

IOSCO reports hedge fund AUM at US3.85 trillion in December 2019, up 8.5% from 2017

ISDA Margin Survey: Top 20 Firms Collected Over $170 Billion of Initial Margin at Year-End 2019

BIS research shows higher bank capital reduces volatility spillovers

Fed plans to reduce afternoon and some term repo liquidity operations

Industry associations ask for postponement of EU Shareholder Rights Directive II

Caixin: China securities lending at record high

The Trade: Mass margin calls spark operational headache for buy-side and brokers

SEC Enhances Standards for Critical Market Infrastructure

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Fed to pump another $2.3 trillion into US economy, expands Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility

IOSCO/CPMI: Jurisdictions move towards full implementation of standards for financial market infrastructures

Japanese regulators plan to exempt central bank holdings from bank leverage ratios

ISLA sustainable finance council calls for short selling ban evidence, policy involvement as pandemic impacts markets

ARRC recommends five-year lookback period on adjusting USD LIBOR to SOFR for cash products

ECB announces package of temporary collateral easing measures

Basel Committee says that as of June 2019, large banks were on track for Basel III

BIS: A New Indicator of Bank Funding Cost

IHS Markit: securities finance revenue for Q1 2020 down 5.5% year over year

Tradeweb reports ADV $1trn in March, repo trading ADV up 32.5% yoy at $235.4bn

Basel Committee and IOSCO defer next UMR go-live dates to Sept 2021 and Sept 2022

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Federated’s Cunningham: Fed support has been effective through tremendous stress

Fed post argues in favor of opacity in bank disclosures during a crisis

Opalesque: Impact of the Fed’s programs on credit markets

BIS: Leverage and margin spirals in fixed income markets during the Covid-19 crisis

OCC seclending CCP activity up 2% in March 2020 year over year

Hazeltree and HedgeLegal collaborate on comprehensive UMR guide

BIS: Dollar funding costs during the Covid-19 crisis through the lens of the FX swap market

DataLend launches daily securities finance market overview

Fed launches temporary repo facility for foreign monetary authorities’ US Treasury holdings

FT: Regulators across Europe clash over bans on short selling

FT: Wobbles in collateralised loan obligations pose problems for lenders

SIFMA calls for regulatory relief from RegSHO, physical securities processing

Risk: Asia CCPs forced to hike margins rapidly during equities rout

Alphacution: Parplus demise attributed to equity collateral, variance swaps and Ronin relationship

Basel Committee postpones Basel III implementation

FIS Astec shows European equity seclending volumes up 110% since Feb 1, US equities seclending up 16%

US regulators speed up adoption of SA-CCR, extend CECL

Standard Chartered creates new Financing and Securities Services unit

ESMA launches consultation on EMIR REFIT trade reporting

21 industry associations ask regulators to delay Initial Margin phase-in timeline

Bloomberg: Japan Repo Rates Hit Most Expensive on Record in Dollar Rush

Bloomberg: J.P. Morgan’s equity derivatives team makes $1.5bn YTD

Axios: US first major economy with non-policy driven negative bond yields

ABN AMRO Clearing posts $200 million net loss on closing out Parplus Partners positions

Hazeltree reports hedge fund leverage down from 230% pre-crisis to under 200% in March 2020

Banking Law: Fed Beats Narrow Bank Lawsuit