ICMA ERCC: The European repo market at 2020 year-end
The ICMA European repo and Collateral Council (ERCC) has published a report on the performance of the European repo market at year-end 2020, focused on the euro, sterling, US dollar…
Read More Reuters: booming EU debt issuance may mean return of primary dealers
European bond sales this year have soared to around 1.7 trillion euros ($2.1 trillion), up 80% from 2019 and levels are expected to stay buoyant for years. The consequent rise…
Read More European Commission issues consultation on CSDR
Regulation (EU) No 909/2014 on central securities depositories (‘CSDR’) aims at increasing the safety and improving settlement efficiency as well as providing a set of common requirements to ensure the…
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Trying to tie SFTR data back to existing market sources (Premium)
When considering ICMA, US repo sources and market data vendor in securities finance, can SFTR data be lined up? SFTR data published by Trade Repositories can generate some useful observations…
Read More FT: UK grip on European derivatives at risk in fight over post-Brexit rules
European regulators have refused to soften rules on swaps trading by EU banks in the UK, threatening London’s post-Brexit hold on a derivatives market worth €50tn a year. The Paris-based…
Read More ESMA report finds European trading volumes at €27tn in equity markets and €101tn in bond markets in 2019
The European Securities and Markets Authority (ESMA) published its first statistical report on European Union (EU) securities markets, with a focus on market monitoring, reference and transparency data and securities…
Read More ECB working paper: Money markets, central bank balance sheet and regulation
This paper analyses money market developments since 2005, and examines factors that have affected money market functioning. We consider several metrics of activity in both secured and unsecured euro area…
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SFTR’s inclusion of buy-side data brings new trends and questions (Premium)
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…
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Key takeaways from our webinar “UMR and Securities Finance in Europe” (Premium)
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…
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Natixis’s Bertrand Bordais, Government Bond Repo Head for GSF, on EU repo market conditions and the outlook for the coming year
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…
Read More ESMA proposes information sharing to prevent Cum/Ex, Cum/Cum and withholding tax schemes
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…
Read More ICMA publishes updated Guide to Best Practice in the European Repo Market
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…
Read More EU agrees on higher skin in the game for CCPs
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…
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A first look at original SFTR data reports (Premium)
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,…
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Firsthand lessons from central bank digital currency and CSD distributed ledger projects
Blockchain, Central Bank Digital Currency, Central banks, Cryptocurrency, Market infrastructure, Technology
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).…
Read More European Association of CCP Clearing Houses (EACH) pushes back on clearing member compensation guidance
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…
Read More ICMA: Almost 1.5 million trades reported under SFTR in week one
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…
Read More EU authorities reach political agreement on CCP recovery and resolution
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…
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Working through the practicalities of the UK decision to cancel CSDR’s settlement discipline regime (Premium)
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…
Read More OneMarketData launches European Composite Trade and Quote database for 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…
Read More ICMA publishes an in-depth report on consolidated tape for greater post-trade transparency in the EU bond markets
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…
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Repo Liquidity as a Solution to (Un)cleared Derivatives Cash 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…
Read More Reuters: Europe’s banks want regulators to match U.S. leverage plan
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.…
Read More Industry associations ask for postponement of EU Shareholder Rights Directive 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,…
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Finadium: The User Experience of Electronic Repo Trading in Europe
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,…
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Secured and Unsecured Funding: The Drive Towards Cross-Product Settlements Automation
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…
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Agency Repo: A New Outsourced Option for Europe
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…
Read More FT: Regulators across Europe clash over bans on 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…
Read More Four European countries approve short selling bans, ESMA gives sign off
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…
Read More ESMA values the European Alternative Investment Fund market at €5.8 trillion
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…
Read More BIS paper: Euro repo market functioning: collateral is king
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…
Read More ICMA European repo survey sets market size at EUR 7,761 billion
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…
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Citi’s Stuart Jarvis on non-traditional players and inventory in seclending (Premium)
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.…
Read More Finadium: Assessing the European Client Securities Finance Market
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…
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SFTR peer update: where does your firm stand in getting ready?
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…
Read More ECB SESFOD survey says funding demand decreased through May 2019
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…
Read More EFAMA: liquidity concerns about ETFs are misplaced
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…
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 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…
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GLMX on why expand its repo platform in Europe (Premium)
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…
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Deutsche Bank asks: why can’t Europe create a post-trade Amazon?
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…
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Battle of the European repo RFQ platforms (Premium)
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…
Read More ECB working paper on banks’ reaction to negative rates in the euro area
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…
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We review the Better Finance report criticizing EU asset manager seclending fee splits (Premium)
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…
Read More AI and fintech fragmentation on FSB European group’s agenda
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…
Read More Does the European pledge model solve all ills? (Premium)
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…
Read More Fed discussion paper: Liquidity Funding Shocks: The Role of Banks’ Funding Mix
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…
Read More ECB paper: ban on trading naked sovereign CDS in 2012 had greatest impact on systemic risk reduction for sovereigns
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…
Read More Survey: Europeans are conflicted about trust in government and AI
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…
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Uncertainty in reporting for CSDR settlement fails rules
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…
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