Bank of Japan

The news that US interest rate futures traded negative for late 2020 and into 2021 is important, but that doesn’t mean that negative US interest rates are on the way.…

Bank of Japan pledges to put asset purchases on hyperdrive

April 27, 2020

Japan’s economy has been in an increasingly severe situation due to the impact of the spread of the novel coronavirus (COVID-19) at home and abroad. Although policy responses taken by…

The steepening slope of financial deregulation (Premium)

April 13, 2020

Regulatory

Bank of Japan, Basel III, EU, Federal Reserve, topstory, US Treasuries

We’re expecting that one outcome of the COVID-19 epidemic will be looser bank balance sheet regulations that may ultimately derail the Basel III framework. Basel III was already strained before…

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

April 8, 2020

Bank of Japan, Basel III, Japan, Leverage Ratio

Twelfth Meeting of the “Council for Cooperation on Financial Stability” On April 8, 2020, the Financial Services Agency (FSA) and the Bank of Japan (BOJ) held the twelfth meeting of…

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

March 26, 2020

Bank of Japan, Bloomberg, Japan, Repo

Rates in Japan’s repurchase market — where bond holders connect with investors looking to borrow them — hit a record Tuesday. The introduction of cheaper, more regular dollar-swap auctions has…

Bank of Japan announces additional measures to stabilize repo and securities lending markets

March 25, 2020

Bank of Japan, Repo, Securities Lending

The Bank of Japan released “Market Operations toward the End of March” and announced measures to maintain stability of the repo market on March 13. In addition, the Bank has…

Nikkei: Bank of Japan expands monetary stimulus to fight coronavirus impacts

March 16, 2020

Bank of Japan, coronavirus, Nikkei

The Bank of Japan expanded its monetary stimulus at a hastily called one-day policy meeting on Monday, joining other central banks rushing to support a global economy hit by the…

Bank of Japan sizes Japanese SFT market at $1.5 trillion

March 3, 2020

Bank of Japan, securities finance, SFTR

The Bank of Japan first published Statistics on Securities Financing Transactions in Japan in January 2020. As part of global efforts to monitor securities financing transactions (SFTs) in the wake…

FT: Bank of Japan’s securities lending facility for ETFs set to avert liquidity squeeze

January 4, 2020

Bank of Japan, ETFs, Securities Lending

Japan acts to avert ETF market liquidity squeeze The Bank of Japan has launched an unusual lending facility for exchange traded funds as it tries to mitigate the market impact…

Bank of Japan announces ETF lending facility

December 19, 2019

Anna Reitman

Bank of Japan, ETF, Securities Lending

The Bank of Japan decided to introduce the ETF lending facility, through which it can temporarily lend its ETFs holdings to market participants, with the aim of improving the liquidity…

Bank of Japan Deputy Governor Masayoshi Amamiya talks up repo as a monetary policy tool

October 10, 2019

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…

Capital markets blockchain weekly roundup

July 16, 2019

Anna Reitman

News and Notes – Fintech

Bank of Japan, CBDC, crypto regulations, Securities and Exchange Commission, tZERO

Our weekly list of announcements about how capital markets and regulators are engaging with digital assets. NY authority licenses Seed CX for institutional crypto services The New York State Department…

Can Japan get out of its deflationary spiral? (Premium)

July 2, 2019

Asia, Interest rates

Bank of Japan, deflation, interest rates, Japan, topstory

The economic position of Japan in raising its interest rates and getting out of nearly 20 years of deflation is not going well. Can anything be done at this point,…

BoJ’s Amamiya says future of money is closer to data

October 31, 2018

Anna Reitman

News and Notes – Fintech

Bank of Japan, Big Data, Central Banks, Masayoshi Amamiya

Excerpts from speech at the 2018 Autumn Annual Meeting of the Japan Society of Monetary Economics, Bank of Japan deputy governor, Masayoshi Amamiya Digital payment instruments, unlike cash, can carry…

Asian bond rates and the UST 10 year: higher funding costs but Japan remains stuck

May 2, 2018

Asia, Interest rates

Bank of Japan, Hong Kong, Japan, Singapore, topstory

As US Treasury 10 year notes passed 3% for the first time since 2013, Asian markets reacted accordingly: equity prices fell and short-term funding costs jumped. Asia remains a big,…

The Bank of Japan comments on central bank digital currencies and a Bank of China former official says they are “inevitable”

April 25, 2018

Asia, Cryptocurrency, Technology

Bank of China, Bank of Japan, Central Bank Digital Currencies, Riksbank, topstory

Masayoshi Amamiya, Deputy Governor of the Bank of Japan (BOJ), made some cautious but intriguing remarks at the IMF-JFSA-BOJ Conference on FinTech last week. He mentioned some stalwarts like big…

ECB and BoJ analyze securities settlement systems: delivery versus payment in a distributed ledger environment

March 28, 2018

News and Notes, News and Notes – Fintech

Bank of Japan, DLT, ECB, settlement

The main findings of the joint analysis, as detailed in this report, can be summarized as follows: DvP can run in a DLT environment subject to the specificities of the…

Regulatory roundup: Powell confirmation, UK Financial Stability, BoJ on local bonds, ECB on unsecured rates and more (Premium)

November 30, 2017

Asia, Bank of England, Bank of Japan, ECB, Europe, Federal Reserve, Regulatory, US

Bank of England, Bank of Japan, ECB, Federal Reserve, LIBOR, Powell, Repo, Repo Clearing, topstory

It’s been a brisk week for interesting regulatory announcements and discussions. This edition of regulatory roundup highlights key points for collateralized trading, including thinking about the direction of the Federal…

Finadium: Central Bank Tapering: Impacts for Liquidity and Collateral Markets

September 12, 2017

Bank of England, Bank of Japan, Collateral Management, ECB, Federal Reserve, Investments, Liquidity Management

Bank of England, Bank of Japan, Central Banks, European Central Bank, Federal Reserve, Finadium, tapering, topstory

Central bank tapering season is on the horizon: this means opportunities for price volatility, spread movements between products, and exchange rate fluctuations. It also means a potentially new set of…

We don’t envy the Bank of Japan’s choices in Quantitative Easing

August 14, 2017

Asia, Interest rates, Investments

Bank of Japan, interest rates, Quantitative Easing, topstory

What a lousy set of options. The Bank of Japan (BoJ) continues to work to bring inflation back to Japan, but with these herculean efforts has come little success and…

Nikkei: Crimped market ever reliant on BOJ lending government bonds

April 27, 2017

Bank of Japan, collateral squeeze, Japan

Editor’s Note: the collateral squeeze comes to Japan courtesy of the Bank of Japan. TOKYO — Unable to find the government bonds they need on the market, Japanese financial institutions…

Nikkei: Bank of Japan bond lending surges

March 2, 2017

Bank of Japan, Japan, Securities Lending

Asia, Risk Management, Securities Lending, Shadow Banking, Short Term Interest Rate Benchmarks, Systemic Risk

TOKYO — The Bank of Japan is rapidly increasing its lending of government bonds to financial institutions facing difficulty acquiring securities as the central bank’s own massive asset purchases deplete…

Japan joins the negative deposit rate club

March 23, 2016

Richard Stinchfield

Bank of Japan, capital costs, Central Banks, negative interest rates, topstory

At the end of January, Japan’s became the latest central bank to drop deposit rates into negative territory, joining the likes of the ECB, Sweden, Switzerland and Denmark. This now…

Central Bank actions on FX Swaps will bolster securities financing markets

November 30, 2011

Jonathan Cooper

Liquidity Management, Repo, Securities Lending, Systemic Risk, Tri-Party Repo

Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Finadium, FX Swaps, Repo, Securities Lending, Swiss National Bank, tri-party repo