Repo

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

Anna Reitman

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

ICMA issues memorandum on repo market best practice with respect to the transition from EONIA to €STR The practicalities of the EONIA/€STR transition for non-cleared repo market have been discussed…

Electronic RFQ repo markets and the social quest for liquidity

September 26, 2019

Ed Tyndale-Biscoe

Repo, RFQ, Technology

electronic trading, Ion, Repo, RFQ, social networks, topstory

New regulations and a drive for efficiency are accelerating the move towards e-trading in repo markets, while advanced platforms and tools are reinventing how liquidity is sourced and accessed. And…

The Fed does the right thing for repo by offering term liquidity through quarter end (Premium)

September 23, 2019

Federal Reserve, Repo, US

Federal Reserve, Liquidity, Repo, topstory, US

On Friday, the Federal Reserve announced that it would be providing term repo liquidity of at least $30 billion for multiple days, effectively getting the market over the quarter end.…

Fed plans overnight and term repo operations to get through quarter end

September 20, 2019

In accordance with the Federal Open Market Committee (FOMC) directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will…

Fed to offer another $75 billion in repo on Friday Sept 20 2019

September 19, 2019

In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

Fed sees demand for $83.75 billion in O/N repo on Thursday; accepts $75 billion

September 19, 2019

Source: https://apps.newyorkfed.org/markets/autorates/temp

Insight Investment money fund clears repo trade at LCH RepoClear

September 19, 2019

Insight Investment, LCH, LCH RepoClear, Repo

INSIGHT MONEY MARKET FUND ACCESSES FRESH SOURCE OF LIQUIDITY Cleared trade via a central counterparty reflects structural development within liquidity market A money market fund managed by Insight Investment, a…

The Next Evolution of Electronic Repo Trading for the Sell-side and Buy-side

September 19, 2019

Tim Martins

Automation, Europe, Repo

Big Data, electronic repo, MTS, MTS BondVision, MTS Repo, Repo, topstory

A broader adoption of electronic repo trading across the buy-side and sell-side is creating opportunities for greater integration, efficiency and automation on trading desks. While most interdealer and dealer-to-client (D2C)…

Fed will conduct a third repo injection up to $75 billion on Thursday September 19, 2019

September 18, 2019

In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

Repo in the news this week – summary of articles

September 18, 2019

WSJ: Fed Injects More Into Money Markets After Banks Bid Heavily, Sept 18, 2019 The Federal Reserve Bank of New York saw huge demand from banks Wednesday morning, as they…

US repo markets show capacity limits – what happens next (Premium)

September 18, 2019

Interest rates, Repo, SOFR, US

Federal Reserve, Repo, topstory, treasuries, US Treasury

US repo markets this week have shown what happens when they reach capacity, and the Federal Reserve has shown phase 1 of what it will try to do to maintain…

Fed prepares second major injection of liquidity into US repo markets

September 17, 2019

Fed, Liquidity, Repo

In accordance with the FOMC Directive issued July 31, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

Federated: Spike in repo rate a technical event

September 17, 2019

Federated, Liquidity, Repo

Susan Hill, CFA Senior Vice President Senior Portfolio Manager, Head of Government Liquidity Group When rates on the typically steady overnight repurchase agreements behave like the stock market, as they…

Fed injects up to $75 billion into repo market to maintain the federal funds rate

September 17, 2019

Federal Reserve, Repo

In accordance with the FOMC Directive issued July 31, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase…

BIS: Spillovers of funding dry ups

September 4, 2019

BIS, funding, Repo

BIS Working Papers No 810 04 September 2019 by Iñaki Aldasoro, Florian Balke, Andreas Barth and Egemen Eren Focus Dry-ups in funding markets often lead to financial crises, with adverse macroeconomic consequences.…

Really, what happens if US dealers run out of balance sheet for funding? (Premium)

September 3, 2019

Repo

Balance sheet, Repo, topstory, US Treasuries

It’s time to rethink some long-held assumptions in financial markets. Continuously rising US Treasury issuance will have its natural consequences: it’s not possible for funding markets to take on a limitless…

Infographic: electronic repo market volumes July 2019

August 26, 2019

Repo

BrokerTec, electronic repo, Eurex, MTS, Repo, topstory, Tradeweb

The electronic repo market continues to grow, with market leaders BrokerTec, Tradeweb, MTS Markets and Eurex all reporting strong figures. We validated each platform’s market share based on their global…

Broadridge posts white paper on trade flows for Centrally Clearing Institutional Tri-Party

August 16, 2019

Broadridge, CCIT, Repo

Broadridge Consulting has issued a white paper on DTCC’s CCIT program including useful details on trade flows. While aimed towards the buy-side, the paper is a useful reference for any…

US Treasury issuance suggests more funding market stress and a push for the Standing Repo Facility

August 15, 2019

Federal Reserve, Repo, US

Federal Reserve, FICC, Repo, Standing Repo Facility, topstory, US Treasury

The US Treasury is expected to issue another $800 billion in debt this year that primary dealers will need to purchase and either fund or find buyers for. The lack…

LSEG gets bigger in the battle of the repo platforms (Premium)

August 6, 2019

Repo

BrokerTec, CME, LSEG, MTS, Refinitiv, Repo, topstory, Tradeweb

As part of its planned purchase of Refinitiv, London Stock Exchange Group (LSEG) will become the majority shareholder of Tradeweb, which gives it a leading position in the repo dealer-to-client…

Review of responses to ESMA consultation on SFTR reporting

August 5, 2019

Regulatory, SFTR

ESMA, Repo, Securities Lending, SFTR, SFTs, topstory

Generally speaking, ESMA’s consultation paper on SFTR reporting under Articles 4 and 12 was accepted by the market. There are some lingering issues, but it appears that ESMA is heading…

DerivSource: FIX Launches New Messages for Post-Trade Space; More to Come in Repo & Sec Lending

August 1, 2019

DerivSource, FIX Trading, Repo, Securities Lending

The industry-driven standards body, FIX Trading Community, has launched a new set of message types geared for the post-trade space by supporting periodic future payment management. Use of these new…

Is there a culture gap in hedge funds building treasury divisions? (Premium)

August 1, 2019

Cash management, Hedge Funds, Repo

cash management, HazelTree, hedge funds, Repo, Securities Lending, topstory, Treasury

We’ve been wondering for a while why hedge fund treasury divisions seem to thrive at some firms and may be dismissed at others, so we asked some hedge funds about…

Nordea Markets: Why are foreign central banks allowed to tighten USD liquidity?

July 23, 2019

Federal Reserve, Nordea Markets, Repo, US liquidity

We continue to believe that dollar scarcity is a key driver of markets, be it the effective Fed Funds rate or the foreign exchange market. While the Fed is mulling…

ESMA critiques European regulatory oversight of CCPs

July 22, 2019

CCPs, ESMA, Repo

The European Securities and Markets Authority (ESMA) has today published its annual peer review report on the overall supervision of EU Central Counterparties (CCPs) by National Competent Authorities (NCAs). The…

WSJ: Supply Surge Sends Overnight Rates Above 10-Year Yields

July 21, 2019

Repo, WSJ

The persistent supply of U.S. government debt flooding the bond market this year has done little to raise bond yields, except in the market for the shortest-term securities. The cost…

An opportunity for market-led reform in equity-for-equity collateral exchanges

July 18, 2019

Oscar Huettner

Collateral Management, Repo

15c3-3, collateral, DEGC, DTCC-Euroclear GlobalCollateral, Equity for Equity, Repo, topstory

Regulatory changes put in place following the financial crisis of 2008 have broadly reshaped the US repo market but few reforms outside of the Intermediate Holding Company requirement have impacted…

Global Investor: LCH to end Euro repo trading in London after Paris switch

July 17, 2019

LCH, Repo

Euro repo and bond trades will be completely withdrawn from London-based LCH Ltd at the start of next year. The full article is available at https://www.globalinvestormagazine.com/articles/3692895/lch-to-end-euro-repo-trading-in-london-after-paris-switch

Tradeweb repo ADV at $213.1 billion in June 2019

July 9, 2019

In the past year, Tradeweb has made significant progress in growing electronic trading of bilateral repos by helping to preserve relationships between dealers and clients while reducing the inefficiencies and…

Winners and losers from the Basel Committee’s Leverage Ratio changes on margin and window-dressing

July 1, 2019

Basel III, Regulatory

Basel Committee, Leverage Ratio, OTC derivatives, Repo, SA-CCR, securities financing transactions, topstory

The Basel Committee on Banking Supervision (BCBS) issued changes to the Leverage Ratio last week that will have impacts to the derivatives and securities finance industries. Like any regulation, this…

Risk: LCH and Eurex create fix for floating repo’s Eonia problem

June 27, 2019

Eonia, Eurex, LCH, Repo

Clearing houses LCH and Eurex will settle floating rate repos in two stages come October, as the industry adjusts to the next-day calculation of the European Central Bank’s new euro…

SecFinTech: GLMX is a repo platform speaking Google’s language (Premium)

June 27, 2019

Anna Reitman

Automation, Repo, Technology

electronic trading, GLMX, Repo, topstory

Repo electronic trading platform GLMX describes itself as a marriage between Wall Street executives and Silicon Valley technologists. We talked to Phil Buck, managing director of GLMX’s European arm about…

DTCC Sponsored Service Achieves Key Milestone in Treasury Market Clearing with Citadel Activity

June 24, 2019

Citadel, Clearing, DTCC, FICC, Repo, US Treasuries

Transactions completed by Citadel in both cash and repo highlight the potential of the Sponsored Service to significantly increase centrally cleared US Treasury activity, reducing the risks of bilateral clearing…

US bank balance sheets show capacity – at what point would policymakers react?

June 5, 2019

cleared repo, Liquidity Management, Repo, US

bank balance sheets, financial risk, Repo, topstory

Multiple data points indicate that US banks have balance sheet capacity to go around, from what’s happening in the repo market to indicators of collateral velocity. Further increases could create…

Battle of the European repo RFQ platforms (Premium)

June 4, 2019

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