European Central Bank

Collateral Management, Europe, Regulatory, Technology

Brexit, European Central Bank, headcount, London, topstory

We’ve been reading the numbers of bankers leaving Brexit (4,000 for Paris, 1,000 for Frankfurt) and something has seemed amiss. EU regulations require more than a token presence in order…

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…

Who should be counterparties to central banks? (Premium)

August 9, 2017

Richard Stinchfield

Credit Exposure, ECB, Federal Reserve

Central Banks, counterparties, European Central Bank, Federal Reserve, primary dealers, topstory

Central banks have shown two models for interacting with counterparties. In the Federal Reserve’s primary dealer system, there are a limited number of participants. On the other hand, the European…

Brexit reaction by Bank of England brings UK in closer alignment to Europe but not in a good way

August 11, 2016

Richard Stinchfield

Bank of England, ECB, Europe, Interest rates, Short Term Interest Rate Benchmarks

Bank of England, Brexit, ECB, European Central Bank, Quantitative Easing, topstory

On August 4th, the Bank of England (BoE) cut its key overnight rate by half to a new record low of 0.25%, lower even than directly in the wake of…

Why the Leverage Ratio doesn’t reduce risk, it just moves it around (Premium Content)

November 30, 2015

Basel III, ECB, Regulatory, Risk Management

ECB, European Central Bank, Leverage Ratio, risk management, topstory

The value of the Leverage Ratio has been proclaimed as a non-risk based measure that is supposed to capture all on and off-balance sheet liabilities of a bank. Together with…

Finadium: T2S, Collateral and Liquidity: Building a Strategy for Growth

May 14, 2015

Collateral Management, Custodians, ECB, Europe, Liquidity Management

Agent Banks, collateral, Custodians, European Central Bank, Finadium, financial intermediaries, Liquidity, Payment Banks, T2S, topstory

Collateral and liquidity management under TARGET2-Securities (T2S) is an emerging work stream that requires attention from market participants. Settlement mechanisms under T2S are now generally understood, including how settlement will…

Bloomberg: European government borrowing costs at record lows

February 12, 2015

European borrowing costs, European Central Bank

Europe’s Debt Investors Lap Up $19 Billion at Record-Low Yields (Bloomberg) — Borrowing costs for European governments tumbled to all-time lows in $19 billion of debt auctions across the continent…

Reuters: ECB trains its sights on banks' in-house risk models

November 19, 2014

European Central Bank

(Reuters) – The European Central Bank (ECB) plans to inspect the internal models that banks use to calculate their risks to ensure that these systems behave consistently, a senior policymaker…

The ECB’s stress tests: what got stressed and what do the results mean?

October 28, 2014

ECB, Europe, Regulatory

European Central Bank, stress tests, topstory

You’ve seen the headlines by now: the European Central Bank’s stress tests showed 25 banks out of 130 with insufficient capital, and 12 of those have already raised further assets. The…

Bloomberg: Cash Deposited at ECB Plunges as Negative Rate Starts

June 13, 2014

European Central Bank

Cash deposited overnight with the European Central Bank plunged to the lowest level since 2011 as a negative interest rate took effect. Euro-area banks parked 13.6 billion euros ($18.4 billion)…

Qualifying Securitisations: a kinder, better SIV?

June 4, 2014

Bank of England, European Central Bank, securitisation, Securitization

Bank of England, Collateral Management, ECB, Securitization

A new discussion paper from the European Central Bank and the Bank of England, “The case for a better functioning securitisation market in the European Union,” has introduced the idea…

ECB: March 2014 survey of credit terms, securities financing and OTC derivatives

April 23, 2014

ECB, European Central Bank

17 April 2014 – Results of the March 2014 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD) Credit terms have eased for the…

Reuters: ECB will accept more ABS as collateral

September 10, 2013

European Central Bank

ECB says could offer leniency in ABS loan reporting FRANKFURT, Sept 9 | Mon Sep 9, 2013 4:00am EDT (Reuters) – The European Central Bank said on Monday it could…

A bullet dodged as banks repay LTRO early

January 28, 2013

Collateral Management, Europe, LTRO, Money Market Funds

collateral, European Central Bank, Fitch, LTRO, money market funds

The news has been coming out that 287 banks will repay some $185 billion in ECB LTRO funds in the coming weeks. This is welcome news for the market and…

Banks look for a Euribor and LIBOR alternative: our take on the latest developments

November 8, 2012

Europe, Repo, Short Term Interest Rate Benchmarks

EURIBOR, European Central Bank, European Repo Council, ICMA, LIBOR, Repo Futures, Repo Indices

Reuters published an interesting article yesterday on the European Repo Council, part of the ICMA, meeting with the European Central Bank to discuss “setting up a benchmark based on actual…

Thursday’s News: Fed and ECB actions impacting the securities finance markets

September 6, 2012

Europe, Liquidity Management, Money Market Funds, Repo, Securities Lending

bond buying, ECB, European Central Bank, Federal Reserve, QE3

This Thursday brings the announcement that European Central Bank President Mario Draghi has confirmed that the ECB will purchase an unlimited number of bonds to support Spain, Italy and other…

ECB freezes Greek bonds as collateral while ISDA may meet on CDSs: has the time finally come?

February 28, 2012

collateral management, European Central Bank, Greece

Collateral Management, Derivatives, Repo

As S&P has announced Greece’s debt to be in selective default, the dominos are starting to fall one by one. The Wall Street Journal reports that the European Central Bank…

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