Regulatory

Basel III, Regulatory, Securities Lending, Total Return Swaps

Basel III, Leverage Ratio, OTC derivatives, Regulatory, securities finance, topstory, Total Return Swaps

Few topics in capital markets can create excitement like Basel regulations. Following the release of our report last week, “Leverage Ratios, SA-CCRs and Securities Finance,” we received insightful and detailed…

The UK’s CRD V proposal: does it stick to the EU plan? (Premium)

August 4, 2020

Europe, Regulatory, UK

Brexit, CRD-V, Regulatory, topstory, UK

Through the Brexit transition, there are open questions about whether UK bank regulation will be exact or close enough to EU rules to achieve equivalence, or whether the UK will…

Worried about negative US interest rates? Get smart on yield curve control (Premium)

May 13, 2020

Interest rates, Regulatory

Bank of Japan, European Central Bank, Federal Reserve, interest rates, negative rates, Regulatory, topstory, yield curve control

The news that US interest rate futures traded negative for late 2020 and into 2021 is important, but that doesn’t mean that negative US interest rates are on the way.…

The Fed’s regulatory wish list: modifying Dodd-Frank’s Collins Amendment (Premium)

May 5, 2020

Dodd-Frank, Federal Reserve, Regulatory

Collins Amendment, Dodd-Frank Act, Federal Reserve, Regulatory, topstory

Responding to a letter from the Senate Banking Committee, Fed Vice Chair for Financial Supervision Randal Quarles presented a new direction on bank capital adjustments. Is this an important change…

Client Webinar April 29: The Macro Environment, COVID-19 and Office Hours

April 21, 2020

Regulatory

capital markets, ESG, Regulatory, topstory

April 29, 2020 10AM New York 3PM London 4PM Paris/Frankfurt This Finadium client webinar will provide a market update on the macro investing environment. Topics include: Regulatory loosening of bank…

Monday News Roundup: new data, fast moving regulations, repo trends and more (Premium)

April 6, 2020

Repo, Securities Lending

Federal Reserve, Leverage Ratio, Regulatory, Repo, Securities Lending, Short selling, topstory

These are tough times to follow what’s happening: nearly every day seems like it brings major pieces of news that in ordinary times would warrant consideration, but now it’s just…

ISLA publishes Regulatory and Policy Maker Guide to Securities Lending, in association with Finadium

September 4, 2019

News and Notes

Finadium, ISLA, Regulatory, Securities Lending

The International Securities Lending Association is delighted to announce the publication of its new Regulator & Policy Maker Guide to Securities Lending. Produced in association with Finadium, a consultancy focused on…

The Powell Put: pros and cons to the Fed’s intervention to sustain the US expansion

June 11, 2019

Interest rates, Investments, Regulatory

Federal Reserve, interest rates, investments, Powell Put, Regulatory, topstory

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Most people would agree that the Federal Reserve has become a leading proponent of supporting asset prices. This “risk-on” approach has protected investors against a brewing trade war with China…

US regulators propose limits to big banks holding TLAC of other big banks

April 2, 2019

News and Notes

Regulatory, TLAC, US

The federal banking agencies on Tuesday proposed a rule to limit the interconnectedness of large banking organizations and reduce the impact from failure of the largest banking organizations. The proposal…

ICMA maps fintech across capital markets, tracks regulations

January 10, 2019

Anna Reitman

News and Notes – Fintech

data vendors, DLT, electronification, ERRC, ESMA, FIIF, FINMA, ICMA, IMF, IOSCO, PMIWG, Regulatory, technology vendors, vendors, World Bank

The International Capital Market Association is spending increasing time analyzing market structure issues arising from electronification of processes and the application of new technologies. This is on the agenda of…

Report: comparing 26 fintech hubs in emerging markets

November 16, 2018

Anna Reitman

News and Notes – Fintech

Ernst & Young, fintech, Regulatory

Artificial Intelligence, Technology

A fintech ecosystem comprises tech-savvy start-ups and scaleups, regulators, governments, traditional institutions, investors, and talent institutions. Regulators are tasked with the challenge of evolving with the industry. They need to…

Fintechs must understand how cybersecurity rules are unfolding

September 14, 2018

Anna Reitman

banks, cybersecurity, fintech, Regulatory

Your executive board has just been notified of a spammy-looking demand from “North Korean” attackers to pay ransom on threats of releasing sensitive client information: What do you have to…

More on handicapping the odds of a repo carve out for the US Leverage Ratio

July 25, 2018

Europe, Repo, SOFR

Europe, Federal Reserve, OFR, Regulatory, Repo, SOFR, topstory

At our Rates & Repo 2017 conference, we proposed taking bets on whether regulators would adopt the US Treasury’s recommendation of excluding Treasuries from the calculation of the Supplementary Leverage…

One golden source data repository is necessary for smart regulation

July 9, 2018

Michael Cyrus

Big Data, Europe, Regulatory

Big Data, DekaBank, Europe, Michael Cyrus, Regulatory, smart regulation, topstory

When discussing data for regulatory reporting, the European Union currently suffers from a burdensome approach to reporting across multiple and often inconsistent regulations. A golden source of data for regulatory…

Regulatory reporting generates huge data sets, but what happens next?

June 28, 2018

Andrea Ferrise

Big Data, Europe, Regulatory, Technology, Trade Repositories

Big Data, collateral, LEI, Regulatory, topstory, Trade repositories, Unavista

The lure of big data to support regulatory oversight of risk, collateral chains and market behavior is strong, but regulators must be ready for big data analytics. This creates a…

Where do SFTs fall in the FRTB? There appears to be more than one answer

June 26, 2018

Basel III, Regulatory

FRTB, Regulatory, Repo, securities finance transactions, Securities Lending, topstory

In this article we look at arguments for where Securities Finance Transactions (SFTs) fall in the Fundamental Review of the Trading Book (FRTB). The answer is either the trading book…

US single counterparty credit limit rules finalized – there are some important nuances here (Premium)

June 19, 2018

Credit Exposure, Federal Reserve, Regulatory, US

credit limits, Federal Reserve, Regulatory, SCCL, topstory

The Federal Reserve has released final rules for single counterparty credit limits (SCCL) to go live for GSIBs on January 1, 2020. The headlines are clear: a 15% credit exposure…

SFTR, Trade Data Repositories and Transparency: An Industry Challenge from the Inside Out

February 15, 2018

Mark Ellis

Europe, Regulatory, Trade Repositories

NEX, Regulatory, SFTR, topstory, Trade repositories

Regulators have made a call for substantial transparency in the form of the Securities Financing Transaction Regulation (SFTR). The data that must be delivered to trade repositories is comprehensive, patchily…

Our analysis of the US Treasury October 2017 report on Capital Markets (Premium)

October 10, 2017

Derivatives, Dodd-Frank, Regulatory, Repo, Securitization, US

Core Principles, derivatives, Dodd-Frank, Regulatory, Securitization, topstory, US Treasury

Last week the US Treasury released “A Financial System That Creates Economic Opportunities: Capital Markets,” part two of their major review of regulations in financial markets. Here’s our analysis of…

How fast could deregulation occur in US financial markets? Comments from Fed Vice-Chair Stanley Fischer suggest some answers

August 22, 2017

Basel III, Federal Reserve, Regulatory

Federal Reserve, Leverage Ratio, Regulatory, Stanley Fischer, topstory, US Treasury

While there may be some excitement in the air about US deregulation, last week Federal Reserve Vice-Chairman Dr. Stanley Fischer eviscerated critics of Dodd-Frank by saying that deregulation would be…

Big Data, little lies, big problems – how Big Data can manipulate algorithmic trading

August 21, 2017

Big Data, Market infrastructure, Regulatory, SEC, Technology

Big Data, compliance, Regulatory, sec

Add a new stock manipulation concern to the list: Big Data. Every piece of information mined out of Big Data by algo systems is suspect, and subject to hacking and…

How important is balance sheet management in prime brokerage today? Look at compensation packages (Premium)

June 27, 2017

Basel III, Dodd-Frank, Hedge Funds, Prime Brokerage, Regulatory, US

bank capital, Leverage, Prime Brokerage, Regulatory, topstory

In our survey of US prime brokers released today, we looked at the relationship between balance sheet optimization with hedge fund clients and employee compensation. We followed the thinking that…

IBM and Promontory bring Watson AI to regulatory technology

June 21, 2017

Basel III, Big Data, Credit Exposure, Dodd-Frank, Fintech, Regulatory, Risk Management, Technology

artificial intelligence, Digital Reasoning, financial technology, fintech, IBM, Regulatory, topstory

IBM provided a briefing on a major new initiative, announced on June 14th, that they are bringing their Watson technology to the realm of regulatory compliance. Here is what we…

Title Transfer Collateral Arrangements – European and US rules

June 19, 2017

Basel III, Collateral Management, Derivatives, Europe, Re-Hypothecation, Regulatory, Repo, Securities Lending

Basel capital rules, MiFID II, Regulatory, title transfer collateral arrangement, topstory, TTCA

Title Transfer Collateral Arrangements (TTCA) are executed between parties engaged in bilateral securities lending, bilateral repo or bilateral derivatives. While these arrangements are not new, having been enshrined in regulation…

Finadium: Scenarios for the Next Collateral Crisis – download a free excerpt

May 4, 2017

CCP, Collateral Management, Derivatives, Investments, Liquidity Management, Market infrastructure, Regulatory, Repo, Technology

CCPs, Central Banks, collateral management, dealers, Regulatory, Repo, technology, topstory

A new research report from Finadium looks at scenarios for a full-blown collateral crisis that could arise over the next two years. These scenarios are all based on real-world situations…

NY Fed President Dudley defends principles of regulatory reform

April 20, 2017

Basel III, Dodd-Frank, Federal Reserve, Market infrastructure, Systemic Risk, US

Basel III, Dodd-Frank, Federal Reserve, politics, Regulatory, topstory

1

As the US Congress turns more attention to potential loosening of regulation of the financial system, important voices in the Federal Reserve continue to defend key aspects of Dodd-Frank, and…

Tough challenges for prime brokers and MiFID II compliance

March 23, 2017

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…

Taxation, transparency and blockchain

March 21, 2017

Bitcoin, Blockchain, Derivatives, Regulatory, SEC, Tax, US

bitcoin, blockchain, IRS, OTC derivatives, Regulatory, sec, topstory

Last week brought two pieces of news that focus attention on some of the regulatory challenges that blockchain-based public markets are up against. This has direct implications for trading in…

Independent research, fee splits and agency securities lending under MiFID II

March 7, 2017

EMIR, Europe, Regulatory, Securities Lending

bank regulation, Europe, MiFID II, Regulatory, topstory

MiFID II is becoming a major focus of attention for banks and other financial firms. How agent lenders charge for research, including market data and performance benchmarking, is a big…

Final customer collateral segregation rules published by Canadian Securities Administrators (CSA)

February 21, 2017

Collateral Management, Derivatives, Re-Hypothecation, Regulatory

Canada, collateral, collateral segregation, CSA, Regulatory, topstory

The Canadian Securities Administrators (CSA) has issued final rules around the segregation of customer collateral used to secure or margin cleared derivatives transactions. The rules apply to all registered clearing…

PRMIA survey: IT spend for regulatory compliance will continue to increase

December 21, 2016

News and Notes

compliance, IT, PRMIA, Regulatory

PRMIA is pleased to share the results of an online survey focused on regulatory compliance and the impact of technology. Risk managers and compliance professionals are pressured by the answers…

US elections offer lessons on systemic risk and interconnected markets

November 14, 2016

Asia, Basel III, Dodd-Frank, Europe, Regulatory, Systemic Risk, US

elections, financial markets, Regulatory, topstory, US

The global market reaction to US elections last week confirmed that when the US is the site of the disruption, the performance of global markets is highly correlated either positively…

Wednesday News Roundup: everyone can be a SIFI, the staying power of regulatory arbitrage (Finadium subscribers only)

January 15, 2014

CCP, Collateral Management, Federal Reserve, Regulatory

Federal Reserve, FSB, Regulatory, SIFIs

A roundup of news and interesting commentary we haven’t otherwise gotten to. Continue reading

Lessons from Lehman: A look at Repo 105

September 10, 2013

Lehman

leverage ratios, Regulatory, Repo 105

In observance of the 5th anniversary of the Lehman bankruptcy filing, we are putting together a series of posts with the top securities financing lessons learned from the events leading…

Hedge funds fill the vacuum in fixed income when banks exit

May 9, 2013

Dodd-Frank, Hedge Funds, Prime Brokerage, Regulatory, Repo, Shadow Banking, Uncategorized

Basel III, Dodd-Frank, Regulatory, Repo

There was an excellent article published on May 7th in Bloomberg Businessweek entitled “Hedge Funds Rush Into Debt Trading With $108B as Banks Trim Risk”, written by Lisa Abramowicz, Miles Weiss,…

Comparing the recent SunGard/PRMIA survey to the conversation on liquidity vs. transparency

February 11, 2013

Derivatives, Dodd-Frank, Regulatory, Shadow Banking

Basel III, Dodd-Frank, OTC derivatives, PRMIA, Regulatory, regulatory capital, SunGard Adaptiv

In a recent survey released by SunGard Adaptiv and the Professional Risk Managers International Association (PRMIA) there was an interesting question on the impact of new capital requirements. The results…

Dudley’s speech on how to fix wholesale funding floats some controversial ideas about tri-party

William Dudley, the President of the New York Fed, just gave a speech at the New York Bankers Association 2013 Annual Meeting. His focus was on wholesale funding and these…

Ten pressing questions in securities finance for 2013

First, we would like to wish all our readers a happy, healthy and prosperous 2013. In this article we take a look at what questions 2013 brings to the world of…

Liberty Street Economics Blog on bilateral and tri-party repo haircut differences: they can't explain it. We can.

September 18, 2012

Liquidity Management, Regulatory, Repo, Repo Futures, Systemic Risk, Tri-Party Repo, Uncategorized

Federal Reserve, Liberty Street Economics, Regulatory, Repo, tri-party repo

On the FRBNY Liberty Street Economics blog there was post on Monday, September 17, 2012 entitled “The Odd Behavior of Repo Haircuts during the Financial Crisis” that caught our eye.…

Lord Turner and the FSA on Shadow Banking: Its Not Pretty

September 10, 2012

Europe, Money Market Funds, Regulatory, Repo, Securities Lending, Shadow Banking, Systemic Risk

Europe, FSA, Regulatory, Repo, Securities Lending, Shadow Banking

A “Commentary” piece in the Telegraph by Lord Turner, Executive Chair of the FSA, was published on September 8, 2012. While a lot of it is hashing what we already…

Singh and Stella on the velocity of collateral: banks just don't trust each other. We think there is more to it.

A July 2, 2012 post by IMF Economist Manmohan Singh and consultant Peter Stella in the blog Vox revisits a familiar topic: the velocity of collateral. We’ve written about this…

Fed Governor Tarullo Beats the Drum on Shadow Banking: We Break Down his Speech for Clues on Future Regulatory Action

June 13, 2012

Money Market Funds, Securities Lending, Shadow Banking, Tri-Party Repo

Federal Reserve, Finadium, Regulatory, Repo, Securities Lending, Transparency, tri-party repo

Federal Reserve Governor Tarullo gave a speech on June 12th entitled “Shadow Banking After the Financial Crisis”. It got a lot of press, but not much analysis past the sound…

The CME is now accepting corporate bonds as collateral for OTC derivatives…we have some questions

April 18, 2012

Collateral Management, Derivatives, OTC Derivatives Clearing, Regulatory, Tri-Party Repo, Wrong Way Risk

CCP, CME, collateral management, Dodd-Frank, OTC derivatives, Regulatory, tri-party repo

As of April 13, 2012 the CME has started accepting corporate bonds as collateral for cleared OTC Interest Rate Swaps. We have been thinking about the CME criteria for accepting…

"When Collateral is King": An Important Research Paper from Credit Suisse

April 9, 2012

Collateral Management, Repo

collateral management, Federal Reserve, Lehman, Regulations, Regulatory, Repo, Shadow Banking

How could a paper called “When Collateral Is King” not attract our attention? It is from Credit Suisse’s Global Strategy Research, published on the March 15, 2012 (a/k/a the Ides…

France passes Financial Transactions Tax; other nations unlikely to follow

March 2, 2012

Regulatory

Financial Transactions Tax, France, Regulatory

In what may be ultimately seen as a major blow to France’s trading markets in favor of international venues, the French National Assembly has adopted the much-discussed Financial Transactions Tax.…

Understanding the difference between SIPC and OLA stays to securities lending transactions

February 26, 2012

Regulatory, Securities Lending

Dodd-Frank, OLA, Regulatory, SIPC

Following her participation at IMN’s Beneficial Asset Holder conference in Arizona this past January, we invited Anita Ryan from eSecLending to comment on the differences between stays to securities lending…

Sure enough, seclending and repo are central to financial markets

February 9, 2012

Liquidity Management, Regulatory, Repo, Securities Lending

AFME, Europe, Liquidity Management, Regulatory, Repo, Securities Lending

Securities Lending Times had a great comment out this morning: securities lending and repo came up the Association for Financial Markets in Europe (AFME) liquidity conference yesterday. A group of…

Hong Kong regulators deny market declines a result of short selling – SLT

October 13, 2011

Regulatory, Securities Lending

Hong Kong, Regulatory, Securities Lending, Short selling