Repo

FSB, Non-Bank financial intermediation, Repo

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…

Client Training: Finadium’s securities lending, repo and hedge fund databases

January 20, 2020

Finadium Event, Hedge Funds, Prime Brokerage, Repo, Securities Lending

Data, leverage funds, Prime Brokerage, Repo, Securities Lending, topstory

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…

Webinar replay: An Intro to Collateralized Transactions for Students and New Professionals (Premium)

January 15, 2020

Collateral Management

collateral trading, Repo, Securities Lending, topstory, Total Return Swaps

Finadium clients can access the webinar replay and slides here. Continue reading

WSJ: Hedge Funds Could Make One Potential Fed Repo-Market Fix Hard to Stomach

January 14, 2020

Federal Reserve, hedge funds, Repo, WSJ

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…

HKEX plans to expand Bond Connect repo trading and clearing

January 7, 2020

Bond Connect, HKEX, Repo

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…

We size the global collateral markets at $19.8 trillion (Premium)

January 7, 2020

CCP, Collateral Management, Derivatives, Repo, Securities Lending

collateral, OTC derivatives, Repo, Securities Lending, topstory

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

Three lessons learned and the data from US repo in the last days of 2019 (Premium)

January 6, 2020

Federal Reserve, Repo, US

Federal Reserve, GCF, Repo, topstory

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…

Bank of England: Simulating liquidity stress in the derivatives market

December 22, 2019

Bank of England, collateral calls, Margin, OTC derivatives, Repo

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…

Webinar: Introduction to Collateralized Transactions for Students and New Professionals

December 17, 2019

Finadium Event

OTC derivatives, Repo, Securities Lending, topstory

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…

Assessing the importance of GSIB scores on year end financial stability

December 16, 2019

Regulatory, Repo, US

Bank Policy Institute, Basel Committee, Federal Reserve, GSIB, Repo, topstory

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…

Fed adds $660 billion in liquidity operations to cover the turn of 2020

December 13, 2019

Federal Reserve, Liquidity, Repo

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…

RepoClear clears first Variable Rate Repo indexed to €STR

December 10, 2019

€STR, LCH, Repo, RepoClear

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…

Finadium: US Repo at Year-End 2019: The Hard Choices Ahead

December 10, 2019

Repo, US

Repo, topstory, US

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,…

Independent dealer association calls for diversity, decrease in concentration in US repo markets

December 9, 2019

Independent Dealer and Trader Association, Repo, US

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…

BIS paper: Euro repo market functioning: collateral is king

December 9, 2019

BIS, Europe, Repo

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…

Reuters: cracks in the regulatory wall against possible revisions to capital rules

December 6, 2019

Quarles, Repo, Reuters, US Treasury

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…

Tradeweb repo activity lifts slightly to $190.4bn ADV in November

December 5, 2019

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…

If the Swiss National Bank can trade repo on SIX, why can’t the Fed trade repo on FICC? (Premium)

December 5, 2019

CCP, Repo

Federal Reserve, FICC, Repo, SIX, Swiss National Bank, topstory

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…

First automated repo trade confirmation in US as Citadel, J.P. Morgan tap MarketAxess engine

November 25, 2019

automation, Citadel, J.P. Morgan, MarketAxess, Repo

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…

Reuters: U.S. banks cram for Fed risk test, with ripple effects in repo

November 25, 2019

Repo, Reuters, stress tests

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…

BME Clearing starts clearing repo trades on European sovereign debt

November 21, 2019

BME, Repo

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…

Russia’s Sberbank completes full repo transaction on blockchain, gets patent

November 21, 2019

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…

Fed to continue repo liquidity operations at least through January 2020

November 20, 2019

Federal Reserve, Repo

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…

Finadium: Local Currency Repo in Asia: Collateral Growth and the Path to Mass Adoption

November 18, 2019

Asia, China, Repo

Asia, China, Japan, Repo, topstory

Finadium has conducted an investigation into local currency repo in Asia. This report offers market sizing, a review of specific country and pan-Asian repo trends, and data on how impactful…

Bloomberg: Powell Faces Doubt That Fed Really Has Repo Under Control

November 15, 2019

Bloomberg, Federal Reserve, Repo

Federal Reserve Chairman Jerome Powell says short-term interest rates are back under control. Not everyone’s convinced. There’s evidence traders expect pressure to build in the weeks ahead. Brokers on Thursday…

Bank Negara Malaysia updates repo policies, extends tenors to five years

November 13, 2019

Bank Negara Malaysia, Repo

This Policy Document sets out the revised requirements and expectations of the Bank on market participants (licensed banks and licensed investment banks) which enter into Repo transactions involving Ringgit and…

ICMA European repo survey sets market size at EUR 7,761 billion

November 13, 2019

ERCC, Europe, ICMA, Repo

The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 37th semi-annual survey of the European repo market. The…

Media worries about sponsored repo miss the mark (Premium)

November 12, 2019

cleared repo, Repo

Bloomberg, Repo, risk, sponsored repo, topstory

We’re confused why Risk and Bloomberg have both written articles lately pointing fingers at sponsored repo as a new reason to worry about repo stability. It is a new transmission…

What we learned at Rates & Repo 2019 (Premium)

November 7, 2019

CCP, Federal Reserve, Repo, US

Federal Reserve, Rates & Repo, Repo, sponsored repo, topstory

Wow, that was something! On Monday, November 4, we hosted 171 people for our third annual Rates & Repo conference. Through four panels, three breakout sessions, a keynote and ample…

Finadium Big Ideas Quarterly Q4 2019 now online

November 7, 2019

Collateral Management, Repo, Securities Lending

collateral management, Repo, Securities Lending, topstory

Our quarterly presentation on research, news and events. Continue reading

TreasurySpring’s Kevin Cook on new channels for European cash management (Premium)

November 6, 2019

Repo, Securities Lending

APIs, corporate loans, Fixed Term Fund, Repo, Securities Lending, topstory, TreasurySpring

Repo and securities lending are being exported to new markets via TreasurySpring’s standardized Fixed Term Fund (FTF). We spoke with Kevin Cook, CEO and co-founder, about current uptake and future…

Exilium NA suspends operations

November 4, 2019

All to All, Elixium, peer to peer, Repo

Elixium North America (NA), the All to All repo platform of Tradition, suspended all operations effective Friday November 1, 2019. The firm plans to conduct a strategic review of services.

Should the Fed skip the small talk and become a quasi-primary dealer?

November 4, 2019

Federal Reserve, Liquidity Management, Repo, US

Federal Reserve, primary dealers, Repo, topstory, US Treasuries

The Federal Reserve’s intervention in recent US repo market activity suggests that it alone has the ability and resources to maintain orderly markets in the face of liquidity rules and…

Bloomberg: Mnuchin Open to Looser Bank Liquidity Rules Backed by Dimon

October 30, 2019

U.S. Treasury Secretary Steven Mnuchin is open to loosening financial crisis-era regulations that have stiffened liquidity rules for big banks to relieve possible cash crunches in short-term funding markets. Mnuchin…

Senator Elizabeth Warren’s letter to US Treasury Secretary Mnuchin on Fed intervention in repo

October 28, 2019

Elizabeth Warren, Repo, US Treasury

I write to you in your capacity as Chair of the Financial Stability Oversight Council (FSOC) to request information regarding the recent volatility in the short-term lending market, the “emergency…

What to expect at Rates & Repo 2019 next week

October 28, 2019

Federal Reserve, Interest rates, Repo, Technology

BNY Mellon, DTCC-Euroclear Global Collateral, Federal Reserve, Rates & Repo 2019, Repo, Standing Repo Facility, topstory, Tradeweb

We’re excited to produce our Rates & Repo 2019 conference in New York on Monday, November 4. With an excellent slate of speakers and over 150 registered attendees so far,…

A pan-Asian collateral stablecoin? Why it may be worth taking seriously (Premium)

October 24, 2019

Asia, Blockchain, Collateral Management, Repo

Asia, blockchain, collateral, collateral baskets, Repo, stablecoins, tokens, topstory

We’re generally positive on blockchain-inspired solutions for collateral, securities lending and repo, but they’ve been slow to gain traction in part because existing platforms are also pretty efficient. In Asia…

Green Bonds are a ready-made opportunity for repo desks both in Asia and around the world

October 21, 2019

Asia, ESG, Repo

Asia, Asia Bond Market Forum, ESG, Green Bonds, Repo, topstory

The Asian Bond Market Forum last week in Shenzhen, China featured a healthy discussion on Green Bonds, building on the model developed by the Asian Capital Markets Forum (ACMF) Green…

Reuters: Wall Street banks see green light from Fed on reserves – sources

October 20, 2019

Federal Reserve, Liquidity, Repo, Reuters, treasuries

Wall Street banks believe they are getting a green light from supervisors to hold more Treasury debt and less cash after last month’s volatility in overnight lending markets, three industry…

Bloomberg: Dimon says regulation limited J.P. Morgan from calming repo market

October 16, 2019

Federal Reserve, J.P. Morgan, Repo

J.P. Morgan had the cash and willingness to calm short-term funding markets when they went haywire in mid-September, but the banking giant said regulations held it back. The firm has…

Getting from a bigger Fed balance sheet to calm repo markets (Premium)

October 15, 2019

Federal Reserve, Interest rates, Repo

Federal Reserve, monetary policy, Repo, Standing Repo Facility, topstory

Fed: “Okay, here’s the plan: build up reserves and that’s going to keep repo rates in check. Okay? Okay.” The Fed has announced its strategy for interest rate management. Will…

Bank of Japan Deputy Governor Masayoshi Amamiya talks up repo as a monetary policy tool

October 10, 2019

Development of Asia’s Capital Markets: Roles and Challenges Keynote Speech at the ASIFMA Annual Conference 2019 Masayoshi Amamiya Deputy Governor of the Bank of Japan Enhancing the Effectiveness of Monetary…

See who is coming to Rates & Repo 2019

October 9, 2019

Repo, US

buy-side, cash investors, Rates & Repo, Repo, topstory

The first 100 registrations for Rates & Repo 2018 are in with the buy-side at 32% of attendees. See the list of registered firms here. Continue reading

Hudson Fintech launches repo platform based on video game tech

October 3, 2019

front office, Hudson Fintech, Repo, securities finance, trading platforms

Hudson Fintech, the London-based technology firm, announced the launch of its front office technology platform for sell-side and buy-side institutions trading in the repo markets. The software captures and displays…

Reuters: Too big to lend? JPMorgan cash hit Fed limits, roiling U.S. repos

October 2, 2019

JPMorgan Chase & Co (JPM.N) has become so big that some rival banks and analysts say changes to its $2.7 trillion balance sheet were a factor in a spike last…

The data show whether the Fed has tamed US repo rates for now (Premium)

October 2, 2019

Federal Reserve, Repo, US

Federal Reserve, Repo, topstory

US repo rates at the end of September 2019 were much calmer than the previous month, but there remains a gap between Fed intervention and who needs funding. Here’s what…

SFM Magazine, Fall 2019, is now online

October 1, 2019

Big Data, Collateral Management, Common Domain Model, Repo, Securities Lending, SFTR, Technology

buy-side, collateral, Repo, securities finance, Securities Lending, SFTR, topstory, treasuries

Securities Finance Monitor Magazine, Fall 2019, is now online. This edition features articles on best execution in securities lending, electronic dealer and RFQ repo markets, the Common Domain Model in…

BofE working paper: Liquidity transformation, collateral assets and counterparties

September 27, 2019

Bank of England, collateral, Repo

Staff Working Paper No. 830 Liquidity transformation, collateral assets and counterparties Calebe de Roure and Nick McLaren We investigate how counterparties’ characteristics, and the collateral they use, interact with their…

ICMA says settlement of €STR-based repo poses challenges

September 27, 2019

€STR, ICMA, Repo