Repo

Europe, Repo

Europe, Repo, RFQ, SFTR, topstory

How many dealer-to-client platforms does the European market need for repo? We’re about to find out, as BrokerTec has launched BrokerTec Quote to compete with Tradeweb as the dominant player…

Should US repo be priced off of OBFR, SOFR or IOER? (Premium)

May 8, 2019

Repo, Short Term Interest Rate Benchmarks, SOFR

BNY Mellon, GCF, OBFR, Repo, SOFR, topstory

We’ve been hearing recently about differing views of US repo benchmarks for pricing that are creating some confusion. Some banks want to price off of IOER, reflecting their opportunities to…

BofE working paper finds (again) that Leverage Ratio damages repo market resilience

May 3, 2019

Bank of England, Leverage Ratio, Repo

Decomposing changes in the functioning of the sterling repo market Joseph Noss and Rupal Patel We identify the degree to which changes in gilt repo market functioning have been driven…

Finadium: Total Return Futures, Total Return Swaps and the Repo Market

April 24, 2019

CCP, Derivatives, Repo, Total Return Futures, Total Return Swaps

Finadium, Repo, topstory, Total Return Futures, Total Return Swaps

Total Return Futures (TRF) are emerging as a competitive product to repo and Total Return Swaps, as reported by Delta One trading desks and witnessed at exchanges and CCPs that…

US and European repo market structure for H1 2019 in five charts (Premium)

April 15, 2019

Europe, Repo, US

DTCC, DTCC GCF Repo Index, Federal Reserve, ICMA, Repo, RepoFundsRate, topstory

US and European repo markets have started the year on divergent paths. One seems to be choppy, with ends of months and quarters seeing regular spikes and governments talking about…

ICMA survey shows continuing steady growth in the European repo market – market size reaches EUR 7,739 billion

April 4, 2019

ICMA, Repo

The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 36th semi-annual survey of the European repo market. The…

Fed blog: Are New Repo Participants Gaining Ground?

April 3, 2019

Fed, Liberty Street Economics, Repo

Following the 2007-09 financial crisis, regulations were introduced that increased the cost of entering into repurchase agreements (repo) for bank holding companies (BHC). As a consequence, banks and securities dealers…

Risk: swaps traders have to learn repo for SOFR hedging

March 25, 2019

Repo, risk, SOFR

Jumbo SOFR swaps herald new world of repo betting A $6 billion interest rate swap that hit the market this week – and was quickly followed by a $3 billion…

Buy-side trading dynamics on FICC sponsored repo

March 25, 2019

cleared repo, Repo, RRP, US

buy-side, FICC, money funds, Office of Financial Research, Repo, sponsored repo, topstory

FICC continues to post increases as a counterparty to the buy-side for US Treasury repo transactions in the sponsored repo format. Data from the end of February 2019 show volumes…

Eurex reaches 28 partners for Special Repo and General Collateral instruments program

March 24, 2019

Eurex, Repo

Eurex press release – interview with Frank Gast, Head of Funding and Financing Sales at Eurex Six weeks Eurex’s Repo Partnership Program – solid basis to accelerate further growth On…

A Standing Repo Facility as the new ceiling on US overnight rates (Premium)

March 19, 2019

Regulatory, Repo

Federal Reserve, Repo, St. Louis Fed, Standing Repo Facility, topstory

The idea has been floated several times now that the Federal Reserve should create a Standing Repo Facility. This would allow banks to hold less reserves and be confident that…

ICMA supports daily leverage ratio calculations but asks for targeted refinements to support repo

March 18, 2019

Basel III, ICMA, Leverage Ratio, Repo

ICMA ERCC responds to BCBS consultation on leverage ratio disclosure March 13 2019 The ICMA ERCC has today responded to a consultative document published by the Basel Committee on Banking…

St. Louis Fed: Why the Fed Should Create a Standing Repo Facility

March 13, 2019

FOMC, Repo, St. Louis Fed

By David Andolfatto, Senior Vice President and Economist, Federal Reserve Bank of St. Louis; and Jane Ihrig, Associate Director and Economist, Federal Reserve Board of Governors The Federal Open Market…

Tradeweb bilateral repo volumes surge in February 2019

March 7, 2019

Repo Volume Surges on Bilateral Trading Growth: ADV of $167.8 billion in repurchase agreements (Repo) trading volume was driven by growth in bilateral electronic trading on the Tradeweb platform.

Commerzbank and Deutsche Börse execute legally binding repo transaction on the blockchain

March 7, 2019

blockchain, Deutsche Borse, Repo

Commerzbank and Deutsche Börse have for the first time successfully used distributed ledger technology to execute a legally binding settlement of a repo transaction. The prototype transaction based on delivery…

One year later, Direct Repo® is thriving

March 6, 2019

Repo, US

Direct repo, Repo, topstory

Following management changes at AVM’s Direct Repo® last year, we had thought the business might be wound down. The exact opposite has happened in fact, and business is booming. We…

Reuters: LCH says bulk of euro repo, debt now cleared in Paris unit

February 22, 2019

LCH, Repo

LONDON (Reuters) – Nearly all UK-based clearing of euro-denominated repo and government bond trades moved to Paris this week, the London Stock Exchange’s clearing arm said on Thursday in a…

What’s in the US OFR’s new repo data collection rules (Premium)

February 18, 2019

Big Data, cleared repo, Regulatory, Repo, US

CCP, FICC, OFR, Repo, topstory, US

The US Office of Financial Research last week released its final rules for repo data collection from CCPs with open commitments of $50 billion in repo activity over the last…

US Office of Financial Research to collect CCP repo transactions

February 12, 2019

GCF Repo, OFR, Repo

The U.S. Office of Financial Research adopted a final rule today to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market. The daily…

Tradeweb platform posts record January at $624.5bn yoy

February 11, 2019

Anna Reitman

News and Notes – Fintech

China, credit, derivatives, ETFs, MBS, Repo, Tradeweb, trading platforms

While growth was broad-based across all asset classes traded on the Tradeweb platform, some of the sharpest gains were noted in investment grade and high-yield US credit, mortgage-backed securities, and…

Finadium Big Ideas Quarterly Q1 2019 now online

February 7, 2019

Securities Lending

BOCT, events, FISL NYC, Repo, Securities Lending, topstory

Our quarterly presentation on research, news and events. Finadium Securities Finance, Collateral and Derivatives subscription clients can log in and download the presentation here. If you are already logged in,…

MTS sees record trading on its repo markets in January 2019

February 7, 2019

MTS, Repo

MTS Repo sees highest ever trading day on 21 January 2019 January was a record month for repo market activity on MTS MTS, the electronic trading platform that is part…

Tradeweb reports new post-crisis high in repo trading of over $170 billion daily for January 2019

February 6, 2019

Trading activity set a new record in January 2019 following the previous high set in December 2018. Average daily volume (ADV) for Tradeweb Markets of $624.5 billion (bn) across rates,…

Behind the uptick in Jan 31 2019 US repo rates (Premium)

February 4, 2019

Repo, SOFR, Tri-Party Repo, US

Canadian banks, Repo, topstory, tri-party, US

Some market participants were surprised while others saw it coming, but all the same, US repo rates saw a sharp uptick on Thursday Jan 31. According to dealers, at one…

ECB working paper: From cash- to securities-driven euro area repo markets: the role of financial stress and safe asset scarcity

February 2, 2019

ECB, Repo

Claus Brand, Lorenzo Ferrante, Antoine Hubert No 2232 / January 2019 Focussing on repo specialness premia, using ISIN-specific transaction-by-transaction data of one-day maturity repos, we document a gradual shift from…

Bloomberg dips its toe into securities lending and repo trading (Premium)

January 31, 2019

CCP, Repo, Technology

Bloomberg, Repo, Securities Lending, topstory

With some nice looking black and white brochures and client meetings at the end of 2018, Bloomberg is telling the market that it will offer securities lending and repo trading…

Review: RMA and EquiLend’s LatAm guide

January 30, 2019

Collateral Management, Securities Lending

collateral, Equilend, Latin America, Repo, RMA, Securities Lending, topstory

RMA and EquiLend have produced a new report on the Latin American securities lending market, “Latin American Securities Finance User Guide 2019.” There’s a lot to appreciate in this piece…

US repo has become a good deal for cash investors

January 29, 2019

Repo, Tri-Party Repo, US

Commercial Paper, Repo, topstory, tri-party, US

As repo rates generally track interest rate benchmarks, the steady rise in the US rate has made US repo into an attractive investment opportunity in its own right for the…

Review of the second annual Asian Prime Collateral Forum

January 24, 2019

Asia, Collateral

Asian Prime Collateral Forum, collateral, Fixed Income, Repo, topstory

We applaud the efforts of the Asian Prime Collateral Forum to popularize the idea of collateral as an important building block for Asia’s capital markets. The second annual Forum was…

ICMA: End of 2018 European repo market relatively uneventful

January 15, 2019

Europe, ICMA, Repo

Today ICMA has published a briefing note on the European repo market at 2018 year-end. The note documents and analyses repo market behaviour through 2018 year-end. Compared with the previous…

Not that dramatic: repo spikes in Europe and the US were quick and understandable

January 7, 2019

Repo, SOFR

Europe, Repo, SOFR, topstory, US

End of year repo trading in both the US and Europe saw the same types of leaps in General Collateral (GC) rates backed by government collateral that we’ve seen before,…

ICMA ERCC publishes revisions to the Guide to Best Practice in the European Repo Market

December 21, 2018

ERCC, Europe, ICMA, Repo

ICMA’s European Repo and Collateral Council (ERCC) is publishing revisions to its Guide to Best Practice in the European Repo Market (Guide). Written on the basis of detailed input from…

The latest ICMA/GFMA repo report is a new call to regulators. Will they listen?

December 20, 2018

Repo, Securities Lending

GFMA, ICMA, Repo, Securities Lending, SFTs, topstory

The report released this week by ICMA and GFMA on the repo markets is a whopper – at 84 pages, it reads like a short book on the current state…

BME Clearing clears its first repo trades executed on BrokerTec

December 19, 2018

BME Clearing, BrokerTec, Repo

BME, through its BME Clearing subsidiary, has cleared its first repo trades executed on the anonymous dealer-to-dealer trading platform BrokerTec, owned by NEX Markets. The clearing of these transactions follows…

GFMA and ICMA recommend recalibrations and carve-outs in global SFT regulation

December 17, 2018

GFMA, ICMA, Repo

The GFMA and ICMA Repo Market Study: Post-Crisis Reforms and the Evolution of the Repo and Broader SFT Markets This report, The GFMA and ICMA Repo Market Study: Post-Crisis Reforms…

Finadium: US Repo Market at End of 2018

December 12, 2018

Repo, US

Finadium, Repo, topstory, US

News and Notes, News and Notes – Fintech

Finadium has released an end of year overview on the US repo market including key themes for liquidity and spreads in the coming year. This report is based on Finadium…

Sberbank and Interros transact OTC repo on blockchain

December 4, 2018

Anna Reitman

blockchain, Interros, Repo, Sberbank

Sberbank and the Interros group company concluded the first OTC repo transaction in electronic format using a smart contract and electronic digital signatures through an IT platform developed by the…

Fed survey sharpens understanding of banks and IOER

December 4, 2018

Federal Reserve, Liquidity Management, Repo

Federal Reserve, IOER, Repo, topstory

A new survey from the Federal Reserve of Senior Financial Officers shines light on why banks use Interest on Excess Reserves (IOER), and what options they might choose if their…

An odd WSJ article on the US repo market

November 25, 2018

Repo, US, WSJ

Investment Banks’ Secret Cash Cow Jon Sindreu Nov. 23, 2018 Investment banks have made a nice little money-spinner out of a once broken trading strategy: The repo. But now that…

Which money fund will be first to force price improvement on repo CCPs? (Premium)

November 20, 2018

CCP, cleared repo, Repo

buy-side, CCPs, cleared repo, Eurex, FICC, investments, Repo, topstory

Cleared repo is growing but rates remain about the same as in the bilateral market. How long will money funds accept this status quo? Or, how long can big cash…

Finadium: 2018 Survey of Institutional Investors in Securities Finance

November 15, 2018

Collateral Management, Investments, Securities Lending

collateral management, Finadium, Institutional Investors, Repo, Securities Lending, topstory

In Finadium’s 2018 survey of institutional investors in securities finance, respondents voiced strong support for securities lending, collateral management and repo. These markets are seen as low risk and they…

“What Should Repo Expect from SOFR?” Our presentation from Rates & Repo 2018 (Premium)

November 12, 2018

Repo

Repo, SOFR, topstory

Finadium clients are invited to review our presentation on the Secured Overnight Financing Rate (SOFR) from Rates & Repo 2018. We focused on two potential impacts of SOFR on repo:…

Crypto is bypassing the securities industry

November 12, 2018

Blockchain, Cryptocurrency, Market infrastructure, Securities Lending, Technology

blockchain, Crypto, Repo, Securities Lending, topstory

A new crypto infrastructure is emerging that replicates many of the features of the securities industry yet operates under important different principles. While some efforts are being made by crypto…

Closer dealer cooperation is now a global trend in securities finance

November 7, 2018

Repo

Balance sheet, Liquidity, Rates & Repo 2018, Repo, topstory

We’ve heard repo dealers confirm in both London and New York that they now see cooperation with their counterparties as a key requirement for the trading relationship. It’s high time…

IIAC: Canada’s Central Counterparty for Repo: A Made-In-Canada, Street-Led Liquidity Success story

November 6, 2018

Canada, CDCC, IIAC, Repo

Toronto, ON, November 6, 2018 – The Investment Industry Association of Canada (IIAC) and the Canadian Derivatives Clearing Corporation (CDCC) commissioned a Deloitte study, “The Development & Evolution of Canada’s…

Will the need for scale plus CCLF mean US repo dealer consolidation? (Premium)

November 6, 2018

CCP, Liquidity Management, Repo

CCLF, CCPs, dealers, FICC, PFMI, Rates & Repo 2018, Repo, topstory

At our Rates & Repo 2018 conference, the Capped Contingency Liquidity Facility (CCLF) was a hot topic. Maybe too hot. We’re seeing a potential driver for market consolidation. Continue reading

Eurex Clearing to expand Partnership Program to Repo and Foreign Exchange

October 26, 2018

Eurex Clearing, OTC derivatives, Repo

Eurex Clearing plans to expand its Partnership Program to cover the repo and OTC foreign exchange (OTC FX) segments. The design of the program extension is complementary to the OTC…

GlobalCapital: China approves tri-party repo

October 21, 2018

China, Repo, tri-party

PBoC has opened the way to triparty repo in the interbank bond market, the central bank announced on October 17. “In recent years, there has been a growing and diverse…

An update on repo, Fed Funds and the IOER spread (Premium)

October 16, 2018

Federal Reserve, Interest rates, Repo

EFFR, IOER, Repo, SOFR, topstory, tri-party