Ronin LLC fails, positions auctioned by CME
CME Group confirmed that, pursuant to its rules, CME Clearing auctioned off portfolios of Ronin, LLC. The auction process was completed this morning, March 20, 2020. Though Ronin is a…
Read More 2019 figures for CME bitcoin futures, options launching in 2020
It’s been about two years since CME launched bitcoin futures in December 2017. Since then, as spot bitcoin prices have experienced multiple up and down cycles, a wide range of…
Read More CME Group Announces SOFR Futures Trading Volume and Open Interest Records
CME Group, the world’s leading and most diverse derivatives marketplace, today announced Secured Overnight Financing Rate (SOFR) futures reached a daily volume record of 152,649 contracts traded on Sept. 17,…
Read More CME reports record trading in SOFR futures as OI surpasses $960 billion notional
Open interest in CME SOFR futures surged to a record 283K contracts ($960B notional) in August, on record ADV of 40K contracts: More than 15 new firms began trading in August,…
Read More CME Group to Launch SOFR Options on January 6, 2020
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it will launch options on Three-Month Secured Overnight Financing Rate (SOFR) futures starting on Jan. 6, 2020,…
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LSEG gets bigger in the battle of the repo platforms (Premium)
As part of its planned purchase of Refinitiv, London Stock Exchange Group (LSEG) will become the majority shareholder of Tradeweb, which gives it a leading position in the repo dealer-to-client…
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SOFR linked paper issuance had a good June but questions remain on curves and pricing
SOFR linked issuance is starting to pick up. June data, compiled by the CME and published in the June/July 2019 ARRC newsletter, showed just over a cumulative $123 billions of paper…
Read More BrokerTec Launches BrokerTec Quote RFQ Trading Solution for European Repo Markets
LONDON, May 22, 2019 /PRNewswire/ — BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced it will launch BrokerTec Quote, a new…
Read More CFTC Staff Issues Clearinghouse Supervisory Stress Test Report
The Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) and the Office of the Chief Economist (OCE) today issued, CCP Supervisory Stress Tests: Reverse Stress Test and…
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Three ways to read the ENSO Data Insights launch (Premium)
ENSO, now a division of CME Group, announced yesterday a new securities finance data product based on hedge fund collected rates. This could be a significant new entrant in the…
Read More CME Group Launches ENSO Data Insights to Aid Best Execution Financing for Hedge Funds
LONDON and NEW YORK, April 16, 2019 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it has launched ENSO Data Insights, a community benchmarking tool…
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…
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The buzz on Total Return Futures (Premium)
The markets are starting to talk more about Total Return Futures (TRF) as a realistic alternative to Total Return Swaps (TRS), which themselves are competition for securities finance products. TRFs…
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Competition in collateral trading notes, structured products and collateral packaged substitutes (Premium)
We’re catching up on a few things following the conclusion of our Finadium Investors in Securities Lending Conference last week in New York. One notable item was a press release…
Read More CME acquires NEX in $5.4 billion deal
CME and NEX Group announced an agreement in which CME Group will acquire NEX in a transaction valued at some $5.4 billion. (£10 per share, consisting of 500 pence in cash…
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More firms get serious about real-time exposure management for collateral (Premium)
A press release from Baton Systems last week echoes what Pirum has been saying for a while: there is a significant amount of cash to be saved in real-time exposure…
Read More Citi and CME Group adopt DLT for margin cost cutting
Citi and CME Clearing have implemented a real-time distributed ledger platform developed by Baton Systems, a payments technology provider. The solution allows a bank to view the collateral in its…
Read More CME Group to launch bitcoin futures in Q4
CME is launching bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods. The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which…
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Our analysis of the CME decision to launch derivatives on US Treasury repo rates (Premium)
The CME announced last week that it would be creating derivatives based on the new US Treasury repo index rate that could one day replace LIBOR. This is a good…
Read More CME Group to develop derivatives on broad Treasuries repo financing rate
CHICAGO, July 26, 2017 /PRNewswire/ — Following the Alternative Reference Rate Committee‘s (ARRC) recent recommendation that the broad Treasuries repo financing rate should serve as the reference rate in certain new U.S. dollar…
Read More Reuters: CME Group sees Chinese hedge funds, state-owned firms driving Asia growth
Feb 21 China’s 2015 market crash sparked a surge in Asian trading for futures exchange giant CME Group as Chinese funds hedged their risk offshore and growth prospects remain strong,…
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How far can swap futures go?
The news from Eris Exchange about swap futures remains positive, and why wouldn’t it? From a risk margin perspective, cleared swap futures make more financial sense than cleared OTC derivatives.…
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Europe's buy-side responds to Eurex's ISA Direct Clearing model
New membership models for buy-side participants at central derivatives counterparties (CCPs) may help alleviate recent capacity and cost constraints. However, the buy-side still faces an existential choice about its future…
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Finadium: Analysis of Eurex and CME Buy-side Direct Clearing Models
This Finadium report presents the direct clearing plans of Eurex’s ISA Direct and the CME’s Direct Funding Participant model. We look at who wins and who loses, impacts on the…
Read More CME proposes its own Direct Clearing program for the buy-side (Premium)
The CME recently proposed a new direct clearing program for the buy-side. This expected move has the potential to create a momentous change in how futures and cleared swaps are…
Read More CME and CloudMargin collaborate on collateral management service for cleared and non-cleared margin
CME Group and CloudMargin announce collaboration to offer CME Clearing and CME Clearing Europe customers the first cloud-based software service that integrates and automates the management of collateral in one…
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Financing tools for synthetic prime brokerage in derivatives and physical markets
Delta One and synthetic financing businesses continue to command attention at prime brokerage firms, the result of a complex web of regulations and client needs that direct business to these…
Read More CME opening account at the Federal Reserve Bank of Chicago
CME recently received notice that the Board of Governors of the Federal Reserve System authorized the Federal Reserve Bank of Chicago (the “Chicago Fed”) to establish and maintain a Reserve…
Read More CME keeps collateral haircuts steady
A link to the CME’s most recent collateral haircut advisory is here.
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CME gets ready to add swaptions to central clearing. Not everyone is happy.
An April 23, 2015 article in IFR “Swaptions clearing raises CCP risk fears” by Helen Bartholomew continues a debate on what derivatives are appropriate for central clearing and which may…
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Repo clearing is coming for HQLA. Should we declare victory and go home? Not really.
An April 16th article in Bloomberg, “Safest U.S. Debt Likely Only Collateral Covered in Repo Clearing” by Liz McCormick confirms what we already suspected: central clearing of repos will not…
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Part I: What’s to come for Chinese Securities Finance in 2015 (Premium Content)
China’s securities markets are beginning to open; any recent scan of the news can show the link between the Shanghai Stock Exchange and the Hong Kong Stock Exchange, a new…
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BNY Mellon and CME set to introduce tri-party indices and futures. Is this the right time?
Bank of New York Mellon and the CME have announced a collaboration to produce indices based on tri-party repo and futures contracts on those indices. This was long expected but…
Read More WSJ: FICC, CME and LCH.Clearnet all looking at repo CCPs
The Fixed Income Clearing Corporation, a subsidiary of the Depository Trust & Clearing Corp., as soon as next month plans to ask the Federal Reserve and the Securities and Exchange…
Read More CME: portfolio margining available for Deliverable Swap Futures
Portfolio Margining-eligible firms will have the ability to portfolio margin USD Deliverable Swap Futures and Ultra U.S. Treasury Bond Futures with OTC Interest Rate Swaps (IRS). Below is the list…
Read More Shanghai Clearing House and CME sign MOU for new product development
Shanghai Clearing House Chairman Xu Zhen said: “Through this cooperation, we hope toleverage CME Group’s international experience in financial innovation and global markets tofurther enhance our central counterparty clearing mechanisms and financial productsinnovation, and continue to expand the influence of Shanghai Clearing House in the globalfinancial markets.”
Read More What fees do CCPs charge clearing members on cash & collateral held? We have the answers for ICE
So what are CCPs charging to hold collateral? For ICE Clear U.S., the answer on cash is 6bp plus a cut to ICE and 5bp on US Treasury balances.Continue reading
Read More The CFTC and liquidity rules for DCOs: do they need committed repo facilities for their US Treasuries?
There is a battle brewing between the CFTC and DCOs over collateral liquidity. And its impact on repo will potentially be enormous. Continue reading
Read More Deliverable Swap Futures: are they living up to the hope and the hype?
So how are the CME Deliverable Swap Futures (DSF) doing? Are they living up to the hope (hype?) that as a margin-friendly alternative to cleared swaps they would take the…
Read More Updated data on CCP collateral holdings (Finadium subscribers only)
Finadium has updated our data on collateral holdings at CCPs worldwide, but there is a clear lag between CCP reporting on collateral vs. reporting on cleared OTC derivatives by notional…
Read More Cross-margining and collateral savings for cleared derivatives: will the savings really be there?
Part of the marketing pitch from derivatives clearing houses is about the benefits of cross-margining. The broader the product mix that is included in a netting pool, the more advantages…
Read More The CME's Paulhac on cross margining of futures and cleared swaps: big savings but complicated
An interview on MarketsWikiReform.com with Laurent Paulhac, Senior Managing Director, Financial and OTC Products & Services at the CME on collateral cross margining caught our eye. It helps clarify how…
Read More DTCC clashes with CME on CFTC data repository rules
In what is looming as a battle of two institutional powerhouses, the DTCC has objected to the CME’s proposal that all participants of their clearing services use the CME’s own…
Read More Collateral Transformation Trades for CCPs: Banks say "Sorry, we can't help you"
An article in Futures and Option World entitled “OTC Clearing IV: How to ease the collateral squeeze” (May 21, 2012) caught our eye. Most of it is the usual stuff on the…
Read More LCH.Clearnet to buy International Derivatives Clearing Group, putting another piece in the clearing puzzle
LCH.Clearnet has announced they are negotiating to buy the International Derivatives Clearing Group (IDCG) from Nasdaq OMX in an all stock deal. The clearinghouses have signed a non-binding agreement, but…
Read More The CME is now accepting corporate bonds as collateral for OTC derivatives…we have some questions
As of April 13, 2012 the CME has started accepting corporate bonds as collateral for cleared OTC Interest Rate Swaps. We have been thinking about the CME criteria for accepting…
Read More The wickedly slippery slope of new collateral acceptance
BNY Mellon lowered the practical, operational boom today on a new round of collateral acceptance for Futures Commissions Merchants (FCMs) on the CME. The CME had announced the acceptance of…
Read More The battle of the clearinghouses is on: LCH.Clearnet versus the CME
The battle of the clearinghouses is on. The key to success is the ability to minimize collateral dislocation by managing margin exposure by portfolio. To do this, clearinghouses must go…
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