Reuters: Hong Kong to cap securities margin financing
HONG KONG, April 4 (Reuters) – Hong Kong’s financial markets watchdog plans to limit the amount brokers can lend against shares to five times their capital. Margin financing is an…
Read More Deutsche Bank will use CloudMargin’s public cloud for collateral infrastructure
According to a joint statement, CloudMargin’s platform will be integrated into Deutsche Bank’s collateral infrastructure. The move is expected to save on costs and improve the client experience by creating…
Read More Charles River and AcadiaSoft team up for margin call automation
Charles River Development, a State Street Company, and AcadiaSoft have announced a business alliance to automate communication of margin calls and collateral estimates between counterparties in the Charles River Investment…
Read More ISDA white paper: Clearing Incentives, Systemic Risk and Margin Requirements for Non-cleared Derivatives
Central clearing of standardized derivatives and margin requirements for non-cleared derivatives are two of the basic tenets of global financial regulatory reform. They are also inter-related: the purpose of margin…
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Direct Clearing: A New Competitive Differentiator for the Buy-side
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…
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Big (alternative) data is better in real-time for alpha and risk
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…
Read More Nasdaq leads team for margin and collateral on the blockchain
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…
Read More ISDA identifies gap in margin call issuance, proposes best practices for collateral 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…
Read More ESMA consults on CCP anti-procyclicality margin measures
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…
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What’s the real risk of CCPs, counterparty risk or liquidity risk?
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.…
Read More Reuters: CLO market experiments with built-in margin reset to manage regulatory exposure
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…
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Tough challenges for prime brokers and MiFID II compliance
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…
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Margin Optimization and the Cost of the Trade
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…
Read More Australian regulators propose new securities lending, repo and margin data collection
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…
Read More EBA and ESMA call for clarification of margin requirements between CRR and EMIR
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…
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An interview with Bimal Kadikar, CEO of Transcend Street Solutions
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…
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Finadium: Prime Brokerage: Towards a New Target Operating Model for Financing
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…
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Prime brokerage 2014 revenues from physical financing and margin (Premium Content)
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…
Read More What's the right margin for collateral in securities lending? 102%? 105%? 120%? (Finadium subscribers only)
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…
Read More Finadium: Guide to Margining for Cleared Swaps vs. Futures
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…
Read More Another shoe drops: Basel Committee and IOSCO issue consultation paper on margin for non-cleared derivatives
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…
Read More "Margin Call", the movie is coming in October! Popcorn anyone?
Just when you thought it passe, another movie about Wall Street is coming your way in October — “Margin Call” staring Keven Stacey, Jeremy Irons, Stanley Tucci, Demi Moore and…
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