Margin

The introduction of buy-side direct clearing for central counterparties (CCPs) has created buy-side opportunities while raising new considerations about business models, risk and reward. Whether and how to engage, for…

Big (alternative) data is better in real-time for alpha and risk

September 6, 2018

Big Data, Technology

Alpha generation, alternative data, Big Data, Goldman Sachs, Hanweck, intraday securities lending data, machine learning, Margin, Volmageddon, Voyant Capital Management

While there’s a lot of discussion about how to stop things like flash crashes, the fact is they are going to keep happening. Regulators are watching closely: ESMA just released…

Nasdaq leads team for margin and collateral on the blockchain

June 19, 2018

News and Notes, News and Notes – Fintech

ABN Amro Clearing Bank, blockchain, collateral, DLT, EuroCCP, Euroclear, Margin, Nasdaq

ABN AMRO Clearing, EuroCCP, Euroclear and Nasdaq have completed a joint proof of concept to make the use of securities more efficient when used to cover margin calls, including after…

ISDA identifies gap in margin call issuance, proposes best practices for collateral STP

February 23, 2018

ISDA, Margin, STP

The ISDA Collateral Infrastructure Committee in its remit to monitor issues and challenges related to the OTC collateral process has identified a gap as it pertains to the current margin call…

ESMA consults on CCP anti-procyclicality margin measures

January 8, 2018

CCPs, EMIR, ESMA, Margin

The European Securities and Markets Authority (ESMA) has opened a public consultation on draft guidelines which aim to clarify the implementation of anti-procyclicality provisions for central counterparties (CCPs) under the…

What’s the real risk of CCPs, counterparty risk or liquidity risk?

August 7, 2017

CCP, Liquidity Management, Risk Management

CCP, default risk, liquidity risk, Margin, risk waterfall, topstory

A recently issued academic paper from Dr. Rama Cont at Imperial College London makes the argument that CCPs don’t mitigate counterparty credit risk, they just transform it into liquidity risk.…

Reuters: CLO market experiments with built-in margin reset to manage regulatory exposure

July 9, 2017

CLO, Margin, regulatory capital

Managers are considering embedding a new repricing feature in US Collateralized Loan Obligation (CLO) funds that would protect firms from regulation that requires them to hold 5% of their funds…

Tough challenges for prime brokers and MiFID II compliance

March 23, 2017

Richard Stinchfield

Europe, Prime Brokerage, Regulatory, Securities Lending

Europe, Margin, MiFID II, Prime Brokerage, Regulatory, topstory

This article looks at the questions of conflicts of interest and co-mingling of interests from the view point of the prime broker/borrower. This is a follow up to a previous…

Margin Optimization and the Cost of the Trade

February 9, 2017

Central Counterparties, Collateral Management, Derivatives, Technology

CCPs, collateral optimization, Margin, Margin optimization, OTC derivatives, technology, topstory

Banks have largely absorbed the Leverage Ratio and the Liquidity Coverage Ratio and are taking on the next challenge: maximizing their balance sheet efficiency in a return to profitability. One…

Australian regulators propose new securities lending, repo and margin data collection

January 19, 2017

Australia, data collection, FSB, Margin, Repo, Securities Lending

Economic and financial statistics, January 2017 Discussion Paper Proposed changes Repurchase agreements and securities lending Consistent with feedback received in informal consultation, the agencies are proposing two alternative versions of…

EBA and ESMA call for clarification of margin requirements between CRR and EMIR

January 19, 2017

CRR, EBA, EMIR, ESMA, Margin

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published today their joint report on the functioning of the Capital Requirements Regulation (EU) No 575/2013 (CRR) with the…

An interview with Bimal Kadikar, CEO of Transcend Street Solutions

May 16, 2016

Big Data, Collateral Management, Derivatives, Liquidity Management, Operations, Technology

Big Data, Bimal Kadikar, collateral management, Liquidity, Margin, technology, topstory, Transcend Street

Transcend Street Solutions is establishing itself as an innovative player in the collateral and liquidity technology space. We spoke with CEO and founder Bimal Kadikar to learn more about what…

Finadium: Prime Brokerage: Towards a New Target Operating Model for Financing

May 27, 2015

CCP, Collateral Management, Prime Brokerage, Securities Lending

collateral, financing, hedge funds, Margin, Prime Brokerage, Securities Lending, topstory

This Finadium report looks at a newly emerging conversation in prime brokerage on the Target Operating Model for financing. We evaluate the historical prime brokerage financing model in relation to…

Prime brokerage 2014 revenues from physical financing and margin (Premium Content)

October 29, 2014

Prime Brokerage, Securities Lending

Delta One, Margin, physical financing, Prime Brokerage, Securities Lending, synthetic financing, topstory

We assess prime broker estimated revenues for 2014 from physical financing and margin. We build on the methodology for finding prime brokerage revenue first published in “Which prime brokers are…

What's the right margin for collateral in securities lending? 102%? 105%? 120%? (Finadium subscribers only)

November 14, 2013

CCP, Collateral Management, Securities Lending

collateral, Haircuts, Margin, overcollateralization, Securities Lending

Our market research is showing some movement in the last year, but also the last few months, in ideas about collateralization levels in securities lending. This article looks at some…

Finadium: Guide to Margining for Cleared Swaps vs. Futures

April 2, 2013

CCP, Collateral Management, Derivatives, OTC Derivatives Clearing

CCP, collateral, DCO, Finadium, futures, Margin, OTC derivatives, Swaps

Finadium has released a guide to understanding margin rules for cleared OTC swaps, non-cleared swaps, swap futures and standard futures. This guide is intended for market professionals needing a briefing…

Another shoe drops: Basel Committee and IOSCO issue consultation paper on margin for non-cleared derivatives

July 9, 2012

Basel III, Collateral Management, Derivatives, Featured, OTC Derivatives Clearing

Basel Committee, Basel III, BCBS, collateral management, IOSCO, Margin, non-cleared derivatives, OTC derivatives

Collateral Management, Liquidity Management, Repo, Securities Lending

In a long expected move, the Basel Committee on Banking Supervision and IOSCO have issued a joint consultation paper, “Margin requirements for non-centrally-cleared derivatives – consultative document.” The main idea…

"Margin Call", the movie is coming in October! Popcorn anyone?

September 9, 2011

Jonathan Cooper

Leverage, Margin, Securities Lending, Short selling