Europe

Europe, Regulatory

Europe, Repo, Securities Lending, SFTR, topstory

When dealing with SFTR data, its a good idea to look underneath the headlines for more information. The inclusion of buy-side data to SFTR Trade Repository reports last week was…

Key takeaways from our webinar “UMR and Securities Finance in Europe” (Premium)

October 20, 2020

Derivatives, Europe, Repo, Securities Lending

Eurex, Europe, Natixis, Repo, securities finance, topstory, UMR

Our October 6, 2020 webinar on uncleared margin rules (UMR) and securities finance in Europe yielded some new insights along with data on how market participants are approaching the convergence…

Natixis’s Bertrand Bordais, Government Bond Repo Head for GSF, on EU repo market conditions and the outlook for the coming year

October 1, 2020

Basel III, ECB, Europe, Repo

Europe, European Central Bank, Leverage Ratio, Natixis, Repo, topstory

Securities Finance Monitor recently spoke with Bertrand Bordais, Global Head of MM Government Bond Repo of the Global Securities Financing team at Natixis. Bertrand shared his views on the European…

ESMA proposes information sharing to prevent Cum/Ex, Cum/Cum and withholding tax schemes

September 25, 2020

cum-cum, Cum-ex, ESMA, Europe, Securities Lending, taxation, withholding tax

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, yesterday published the Final Report on its inquiry into Cum/Ex, Cum/Cum and withholding tax (WHT) reclaim schemes. ESMA’s…

ICMA publishes updated Guide to Best Practice in the European Repo Market

September 24, 2020

ERCC, Europe, ICMA, Repo

The ICMA European Repo and Collateral Council (ERCC) is the principal industry standards setting body for the European repo market. To this end, the ERCC publishes, and routinely updates, the…

EU agrees on higher skin in the game for CCPs

August 19, 2020

CCPs, Europe

From ISDA Daily Lead: EU legislators have reached an agreement on the rules and procedures for resolving a central counterparty in crisis that includes increasing the amount of skin in…

A first look at original SFTR data reports (Premium)

August 13, 2020

Repo, Securities Lending

Data, Europe, securities finance, Securities Financing Transactions Regulation, SFTR, topstory

Securities Financing Transactions Regulation (SFTR) data are now being released by Trade Repositories on a weekly basis. As we prepare to launch our client GUI for data retrieval and analysis,…

Firsthand lessons from central bank digital currency and CSD distributed ledger projects

Over the last several years I worked on innovative Distributed Ledger Technology (DLT) projects in Europe and Canada with a focus on building new infrastructure for Financial Market Infrastructures (FMIs).…

European Association of CCP Clearing Houses (EACH) pushes back on clearing member compensation guidance

July 31, 2020

CCPs, EACH, Europe

The European Association of CCP Clearing Houses (EACH) welcomes the opportunity to respond to the FSB consultative document “Guidance on financial resources to support CCP resolution and on the treatment…

ICMA: Almost 1.5 million trades reported under SFTR in week one

July 22, 2020

Europe, ICMA, Repo, SFTR

Since 13 July 2020, EU-incorporated and located banks and investment firms, as well as CCPs and CSDs, have had an obligation to report all new SFTs and subsequent life-cycle events…

EU authorities reach political agreement on CCP recovery and resolution

June 25, 2020

CCPs, Europe

The EU is stepping up its rules to make clearing houses safer and address systemic risk that could arise from their potential failure. The Presidency of the Council and the…

Working through the practicalities of the UK decision to cancel CSDR’s settlement discipline regime (Premium)

June 25, 2020

Europe, Regulatory

CSDR, Europe, settlement discipline, topstory, UK

The UK took a major stand in its preparations for Brexit on Tuesday with the publication of a statement on financial regulations. Securities finance and repo market participants immediately saw…

OneMarketData launches European Composite Trade and Quote database for TCA

June 10, 2020

News and Notes – Fintech

Europe, market data, OneMarketData, TCA

OneMarketData has launched a European Composite Trade and Quote (ECTQ) database, designed to provide support for Transaction Cost Analysis (TCA) and regulatory solutions. Aggregating 33 market sources, including exchanges, multilateral…

ICMA publishes an in-depth report on consolidated tape for greater post-trade transparency in the EU bond markets

April 29, 2020

bond markets, consolidated tape, Europe, ICMA

ICMA has today published a report into considerations surrounding the establishment of an EU consolidated tape (CT) for bond markets. This report was produced in response to a request from…

Repo Liquidity as a Solution to (Un)cleared Derivatives Cash Margin Requirements

April 23, 2020

Frank Odendall

Collateral Management, Derivatives, Europe, Repo, Uncategorized

derivatives, Deutsche Borse, Eurex, Europe, Margin, Repo, topstory, UMR, Uncleared Margin Requirements

Entities in the scope of phases five and six of the Uncleared Margin Rules (UMR) will need reliable and efficient access to cash in order to manage their daily OTC…

Reuters: Europe’s banks want regulators to match U.S. leverage plan

April 21, 2020

Europe, Leverage Ratio, Reuters

Earlier this month, the Fed proposed a temporary easing of a supplementary leverage ratio rule that applies to the biggest U.S. banks that have assets of more than $250 billion.…

Industry associations ask for postponement of EU Shareholder Rights Directive II

April 14, 2020

Europe, ISLA, Shareholder Rights Directive II, SRD II

Joint Associations’ Letter to EC on the Impact of COVID-19 to SRD II Implementation On the 9th April 2020, and working in collaboration with AFME, AFTI, AGC, ASSOSIM, EACB, EBF,…

Finadium: The User Experience of Electronic Repo Trading in Europe

April 14, 2020

Europe, Repo, Technology

electronic trading, Europe, Finadium, Repo, technology, topstory

In this report, Finadium delivers the results of conversations with over a dozen market participants using electronic repo trading platforms. We heard from these firms what’s working and what isn’t,…

Secured and Unsecured Funding: The Drive Towards Cross-Product Settlements Automation

April 9, 2020

Tim Martins

depo trading, ECB, Europe, MTS Markets, Repo, T2S, topstory

As the funding profile of European banks continues to mature, MTS finds that a diversity of product types across secured and unsecured are still necessary and in use. There is…

Agency Repo: A New Outsourced Option for Europe

April 2, 2020

Christian Regis

Europe, Repo, Societe Generale, topstory

Outsourcing key trading and financing functions has taken on a new importance in an era of regulatory change and cost pressures. Repo has withstood change but that is now beginning…

FT: Regulators across Europe clash over bans on short selling

March 31, 2020

Europe, FT, Short selling

France, Spain and Italy issued one-day prohibitions against betting on falling share prices for selected companies — and then longer bans of between one and three months, applied to all stocks…

Four European countries approve short selling bans, ESMA gives sign off

March 18, 2020

Europe, Short selling

From the FT: France, Italy, Spain and Belgium said overnight that they would move to stop the short selling of hundreds of stocks listed on their markets. European markets staged…

ESMA values the European Alternative Investment Fund market at €5.8 trillion

January 14, 2020

AIF, ESMA, Europe

The European Securities and Markets Authority (ESMA) today published its second statistical report on European Union (EU) Alternative Investment Funds (AIF). The study found that the EU AIF sector in…

BIS paper: Euro repo market functioning: collateral is king

December 9, 2019

BIS, Europe, Repo

Repo markets play a major role in redistributing liquidity and collateral between financial institutions. A unique transaction-level database reveals how the euro-denominated repo market has performed since the mid-2000s. We…

ICMA European repo survey sets market size at EUR 7,761 billion

November 13, 2019

ERCC, Europe, ICMA, Repo

The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 37th semi-annual survey of the European repo market. The…

Citi’s Stuart Jarvis on non-traditional players and inventory in seclending (Premium)

November 13, 2019

Securities Lending

agency securities lending, Beneficial Owners, Citi, Europe, technology, topstory

When non-traditional players come to the securities lending markets, they often bring non-traditional inventory with them. We speak with Citi’s head of European securities lending, Stuart Jarvis, about the implications.…

Finadium: Assessing the European Client Securities Finance Market

October 8, 2019

Europe, Securities Lending, Technology

Europe, securities finance, technology, topstory

This report is an analysis of the 73 large beneficial owners that drive the European lender marketplace, the newer lenders that are hinting to join, and the drivers that encourage…

SFTR peer update: where does your firm stand in getting ready?

September 10, 2019

mstan

Europe, Regulatory, Repo, Securities Lending, Technology

Delegated Reporting, Europe, MarketAxess, securities finance, SFTR, topstory, UTI

MarketAxess and Finadium recently surveyed 16 large market participants to better understand the current state of readiness for the Securities Financing Transactions Regulation (SFTR). The results of the survey show…

ECB SESFOD survey says funding demand decreased through May 2019

August 5, 2019

ECB, Europe, funding, SESFOD

Results of the June 2019 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD) 31 July 2019 Credit terms eased for almost all counterparties…

EFAMA: liquidity concerns about ETFs are misplaced

July 17, 2019

EFAMA, ETFs, Europe, Liquidity

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…

EU CRD5/CRR2 to apply from June 28 2021

July 7, 2019

capital regulation, CRD5, CRR2, Europe

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…

EBA sees European bank Basel III shortfall at EUR 135.1 billion

July 3, 2019

Basel III, EBA, Europe

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…

GLMX on why expand its repo platform in Europe (Premium)

July 3, 2019

Europe, GLMX, topstory

Europe’s repo market has seen a spike in interest for electronic platforms setting up shop, with BrokerTec recently joining a field already occupied by heavyweights like Tradeweb, MTS, Eurex, and…

Deutsche Bank asks: why can’t Europe create a post-trade Amazon?

June 10, 2019

Big Data, Technology

Amazon, bigtech, CSDs, Custodians, Deutsche Bank, Europe, T2S

In a recent report about the future of post-trade in a T2S era, Deutsche Bank’s Global Transaction Banking division strikes a note we hear more and more often these days…

Battle of the European repo RFQ platforms (Premium)

June 4, 2019

Europe, Repo, RFQ, SFTR, topstory

How many dealer-to-client platforms does the European market need for repo? We’re about to find out, as BrokerTec has launched BrokerTec Quote to compete with Tradeweb as the dominant player…

ECB working paper on banks’ reaction to negative rates in the euro area

May 21, 2019

ECB, Europe, negative interest rates

ECB Working Paper Series Negative interest rates, excess liquidity and retail deposits: banks’ reaction to unconventional monetary policy in the euro area Selva Demiralp, Jens Eisenschmidt, Thomas Vlassopoulos Negative monetary…

We review the Better Finance report criticizing EU asset manager seclending fee splits (Premium)

May 13, 2019

ESMA, ETFs, Europe, Securities Lending

ESMA, ETFs, Europe, Securities Lending, topstory, UCITS

Independent European consumer organization BETTER FINANCE released a report on UCITS fee splits in the European securities lending market. They found the known wide disparities in fee splits and criticized…

AI and fintech fragmentation on FSB European group’s agenda

May 9, 2019

News and Notes – Fintech

artificial intelligence, Europe, fintech, FSB, G20

At a recent meeting in Bucharest, the Financial Stability Board (FSB) Regional Consultative Group (RCG) considered implications of the growing use of artificial intelligence, machine learning and big data for…

Does the European pledge model solve all ills? (Premium)

April 30, 2019

Europe, Securities Lending

Europe, Pledge model, Securities Lending, topstory

The benefits of the pledge model in securities lending for borrowers are clear: by retaining legal ownership of the security with the borrower, regulated entities no longer have the obligation…

Fed discussion paper: Liquidity Funding Shocks: The Role of Banks’ Funding Mix

April 26, 2019

Europe, Federal Reserve, liquidity shocks

This study attempts to evaluate the impact of an increase in banks’ funding stress and its transmission to the real economy, taking into account different funding sources banks can rely…

ECB paper: ban on trading naked sovereign CDS in 2012 had greatest impact on systemic risk reduction for sovereigns

March 26, 2019

Europe, European Systemic Risk Board, systemic risk

Effectiveness of policy and regulation in European sovereign credit risk markets: a network analysis Rebekka Buse Melanie Schienle Jörg Urban European Systemic Risk Board Working Paper Series No 90 March…

Survey: Europeans are conflicted about trust in government and AI

March 21, 2019

artificial intelligence, Center for the Governance of Change, ethical AI, Europe

News and Notes – Fintech

Europeans are anxious about technological change and want governments to take action, according to a new report by the Centre for the Governance of Change, which surveyed citizens of eight…

Uncertainty in reporting for CSDR settlement fails rules

March 11, 2019

ESMA, Europe, Regulatory, Settlements

CSDR, ESMA, Europe, settlement fails, topstory

It looks like ESMA’s application of settlement discipline under CSDR may have extraterritorial impacts, which could result in investor preferences to use one CSD over another to ensure being subject…

ECB papers highlight the state approach to solving market problems

February 19, 2019

Europe, Regulatory

ECB, Europe, Regulation, topstory

Recent European Central Bank (ECB) working papers on collateral have been really good, well researched and thoughtful about the problems they are tackling. They also show a continued bias towards…

Finadium: European Delta One Trader Survey

January 22, 2019

Delta One, Europe, Liquidity Management, Securities Lending

Delta One, Europe, Finadium, listed derivatives, securities finance, topstory

The Delta One business is a type of market making for liquidity and risk management clients that seek economic exposure of a security without the complexity of carrying the underlyings.…

ICMA: End of 2018 European repo market relatively uneventful

January 15, 2019

Europe, ICMA, Repo

Today ICMA has published a briefing note on the European repo market at 2018 year-end. The note documents and analyses repo market behaviour through 2018 year-end. Compared with the previous…

Not that dramatic: repo spikes in Europe and the US were quick and understandable

January 7, 2019

Repo, SOFR

Europe, Repo, SOFR, topstory, US

End of year repo trading in both the US and Europe saw the same types of leaps in General Collateral (GC) rates backed by government collateral that we’ve seen before,…

ICMA ERCC publishes revisions to the Guide to Best Practice in the European Repo Market

December 21, 2018

ERCC, Europe, ICMA, Repo

ICMA’s European Repo and Collateral Council (ERCC) is publishing revisions to its Guide to Best Practice in the European Repo Market (Guide). Written on the basis of detailed input from…

Reuters: EU takes new step on derivative clearing, despite UK, U.S. concerns

December 3, 2018

CCPs, equivalency, Europe, Reuters