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 Fed launches temporary repo facility for foreign monetary authorities’ US Treasury holdings
The Federal Reserve on Tuesday announced the establishment of a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility) to help support the smooth functioning of…
Read More Bloomberg: Japan Repo Rates Hit Most Expensive on Record in Dollar Rush
Rates in Japan’s repurchase market — where bond holders connect with investors looking to borrow them — hit a record Tuesday. The introduction of cheaper, more regular dollar-swap auctions has…
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Six charts you should see this week (Premium)
Lots of unprecedented market movements this week. Here are a number of charts that collateral trading professionals should review. The big question is how far have the Fed’s liquidity programs…
Read More Bank of Japan announces additional measures to stabilize repo and securities lending markets
The Bank of Japan released “Market Operations toward the End of March” and announced measures to maintain stability of the repo market on March 13. In addition, the Bank has…
Read More Bank of England launches Contingent Term Repo Facility
In response to financial market conditions the Bank of England is today activating the Contingent Term Repo Facility (CTRF) – a temporary enhancement to its sterling liquidity insurance facilities. This…
Read More Agency REITs see margin stress in mortgage and repo markets
FT: The mortgage Reits entered the coronavirus crisis owning an estimated $500bn of bonds backed by property loans and have come under pressure because they use short-term borrowings to squeeze…
Read More Bloomberg: Before Fed Acted, Leverage Burned Hedge Funds in Treasury Trade
When coronavirus panic kicked off unprecedented turmoil in Treasuries last week, hedge fund leverage was lurking. The firms use borrowed money from the repurchase market for the popular basis trade,…
Read More Fed expands asset purchases by sector, offers $500 billion in term repo operations
Statement Regarding Treasury Reserve Management Purchases and Repurchase Operations March 12, 2020 As a part of its $60 billion reserve management purchases for the monthly period beginning March 13, 2020…
Read More Central banks can’t solve the coronavirus but are succeeding in a key area
Moves this week by the Federal Reserve and the Bank of England show the capacity and limits of central banks in influencing both markets and economies. Central banks will not…
Read More Fed increases repo liquidity for the next month to $175b overnight and $45b two week term
Beginning Thursday, March 12, 2020 and continuing through Monday, April 13, 2020, the Desk will offer at least $175 billion in daily overnight repo operations and at least $45 billion…
Read More Barclays: US liquidity conditions and funding stresses could push Fed to Standing Repo Facility
Concerns over liquidity conditions and funding stresses could encourage the creation of a standing repo facility (SRF), which would permit banks to convert Treasury holdings to reserves on-demand at a…
Read More Fed increases repo operations this week in proactive move to ease liquidity concerns
The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has updated the current monthly schedule of repurchase agreement (repo) operations. Beginning with today’s operation…
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Is US repo heading for trouble? Here’s the story in five charts (Premium)
The media is excited, blogs are buzzing, but the reality is that the health of the US repo market in the face of sharp equity market downturns, a rate cut…
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Finadium updates: new mutual fund seclending data, SOFR Averages, events and review of market predictions
It’s been a very active Q1 2020 at Finadium, both in our product development and the complex changes in market dynamics that the coronavirus and Brexit have introduced. Here’s a…
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Global force majeure creep into the collateral world (Premium)
China’s Council for the Promotion of International Trade (CCPIT) has issued a record number of force majeure certificates, now at 1,615, covering $15.7 billion in transactions. An expansion of the…
Read More Reuters: JPM reducing Fed reserves, putting $50b+ into repo, starting to use Fed discount window
JPMorgan gets busy in repo lending after regulatory nod: CFO JPMorgan Chase & Co (JPM.N) is putting more cash into overnight lending markets and holding less for a rainy day,…
Read More ICMA’s ERCC publishes guide to reporting under the SFTR
ICMA’s European Repo and Collateral Council (ERCC) has today published its guide to reporting repo transactions under the EU Securities Financing Transactions Regulation (SFTR). The new reporting regime introduced by…
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Open market operations, QE or the discount window, it’s still large-scale Fed repo liquidity provision
The semantics are papering over the fact that the Fed appears to be committed to supporting repo liquidity and behind that, massive US debt issuance. While still tinkering with adjusting…
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Global repo news: Sweden’s Riksbank goes positive, the Fed wants out and China keeps liquidity going
Repo continues to be a main attraction for policy makers, investors and reporters. The last week has seen notable moves on the global repo stage around the world, including at…
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Webinar replay: Client training on Finadium’s securities lending, repo and hedge fund databases (Premium)
Finadium clients can access the webinar replay here. Continue reading
Read More Finadium Big Ideas Quarterly Q1 2020 now online
Our quarterly presentation on research, news and events. Continue reading
Read More Tradeweb reports repo trading ADV up 36.5% in January 2020, to record ADV of $234 billion
Tradeweb Monthly Activity Report, January 2020 Average daily volume (ADV) across rates, credit, equities and money markets for Tradeweb Markets was $801.9 billion (bn) in January 2020, an increase of…
Read More Reuters: Swiss National Bank reintroduces repos to steer interest rate
The Swiss National Bank has started injecting money into the country’s banking system to steer interest rates downwards, the first time it has used the tool in more than seven…
Read More Fed keeps target rate at 1.5%-1.75%, sets IOER at 1.6%, commits to repo liquidity through April 2020
As part of its policy decision, the Federal Open Market Committee voted to authorize and direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed…
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Money fund volume on sponsored repo leaps in December 2019 (Premium)
US money fund volumes on sponsored repo nearly doubled in December 2019, according to money fund filings. While the usual suspects were well represented, there were also some new firms…
Read More Broadway Technology Adds Repo Functionality to Global FICC Trading Platform
Broadway Technology, a leading provider of high-performance fixed income and foreign exchange front-office solutions, today announced it has rolled out extensive new functionality for repurchase agreement (repo) trading on its…
Read More FSB report finds no net change in repo positions of non-bank intermediaries
Global Monitoring Report on Non-Bank Financial Intermediation 2019 OFIs continue to be net providers of cash to the financial system through reverse repos, while banks remain net recipients of cash…
Read More Client Training: Finadium’s securities lending, repo and hedge fund databases
Finadium will present an online training session for our clients: Finadium’s securities lending, repo and hedge fund databases will run on Wednesday February 5, 2020 at 10AM EST / 3PM GMT…
Read More Webinar replay: An Intro to Collateralized Transactions for Students and New Professionals (Premium)
Finadium clients can access the webinar replay and slides here. Continue reading
Read More WSJ: Hedge Funds Could Make One Potential Fed Repo-Market Fix Hard to Stomach
One hurdle to a possible fix for recent volatility in the short-term cash markets: hedge funds. As part of its stated goal of reducing repo-market volatility, the Federal Reserve is…
Read More HKEX plans to expand Bond Connect repo trading and clearing
Clear Vision for a New Decade Charles Li What does 2020 and the next decade hold? How will geopolitics, global economics and technological innovations impact our lives? More importantly for…
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We size the global collateral markets at $19.8 trillion (Premium)
Finadium conducted a market sizing exercise of the global collateral markets, including a diversity of collateral product types held by private sector market participants. Here’s what we found. Continue reading
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Three lessons learned and the data from US repo in the last days of 2019 (Premium)
Year end 2019 in the US repo markets were notably calm due to the heavy dose of liquidity promised by the Federal Reserve. The sky didn’t fall, no crisis happened…
Read More Bank of England: Simulating liquidity stress in the derivatives market
By Marco Bardoscia, Gerardo Ferrara, Nicholas Vause and Michael Yoganayagam We investigate whether margin calls on derivative counterparties could exceed their available liquid assets and, by preventing immediate payment of the…
Read More Webinar: Introduction to Collateralized Transactions for Students and New Professionals
January 15, 2020 10AM New York 3PM London 4PM Paris/Frankfurt In this free public webinar, Finadium will deliver an overview of repo, securities lending and OTC derivatives collateral activity, linked…
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Assessing the importance of GSIB scores on year end financial stability
There’s been talk lately that bank GSIB scores – a measurement that determines how much capital banks need to hold – could be too high for management liking at year…
Read More Fed adds $660 billion in liquidity operations to cover the turn of 2020
Friday, 12/13/2019 – Tuesday, 1/14/2020 The Desk plans to conduct same-day settlement overnight repo operations on each business day, a one-day forward settlement overnight operation, and a series of term…
Read More RepoClear clears first Variable Rate Repo indexed to €STR
RepoClear has successfully cleared its first Variable Rate Repo (VRR) trade indexed on the Euro short-term rate (€STR). -Credit Suisse among the first participants to clear the new rate at…
Read More Finadium: US Repo at Year-End 2019: The Hard Choices Ahead
This report reviews the state of US repo markets at year-end 2019. It provides market sizing across multiple portions of US repo, lessons derived from the events of September 16-20,…
Read More Independent dealer association calls for diversity, decrease in concentration in US repo markets
White Paper on the Repo Market Affecting U.S. Treasury and Agency MBS Independent Dealer and Trader Association The goal of this White Paper is to foster a greater understanding of…
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 Reuters: cracks in the regulatory wall against possible revisions to capital rules
U.S. regulators signal openness to rethinking practices that caused repo market woes In a potential win for the banking industry, two top U.S. regulators on Wednesday signaled they may be…
Read More Tradeweb repo activity lifts slightly to $190.4bn ADV in November
Average daily volume (ADV) across rates, credit, equities and money markets for Tradeweb Markets was $693 billion in November 2019, an increase of 22% year-on-year. Average daily trades for the…
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If the Swiss National Bank can trade repo on SIX, why can’t the Fed trade repo on FICC? (Premium)
There seems to be an idea that the Fed should only conduct repo operations with its preferred counterparties using its own operational facilities. This is commingled with the sense that…
Read More First automated repo trade confirmation in US as Citadel, J.P. Morgan tap MarketAxess engine
MarketAxess facilitated the first repurchase agreement (repo) trade affirmation between Citadel and J.P. Morgan, marking the first automated confirmation through MarketAxess in the US. MarketAxess is the operator of an…
Read More Reuters: U.S. banks cram for Fed risk test, with ripple effects in repo
New quarterly data from the biggest U.S. banks suggest that some will need to back away from short-term lending markets by year-end to avoid triggering requirements that they hold more…
Read More BME Clearing starts clearing repo trades on European sovereign debt
BME Clearing, BME’s Central Counterparty (CCP), today started offering clearing of repo trades on sovereign bonds from several European countries, in addition to the clearing of Spanish sovereign debt repo…
Read More Russia’s Sberbank completes full repo transaction on blockchain, gets patent
Sberbank is the first in Russia to have obtained a patent for a repo deals solution and an execution system that utilize distributed ledger technology. The solution was developed by…
Read More Fed to continue repo liquidity operations at least through January 2020
Statement and Minutes of the Federal Open Market Committee October 29–30, 2019 The Committee also directs the Desk to conduct term and overnight repurchase agreement operations at least through January…
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