Repo

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…

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

Since its introduction, Interest on Excess Reserves (IOER) has let Federal Reserve account holders earn spreads on the rates they pay institutions that can’t access this Fed rate directly. We…

The ECB on repo in the Leverage Ratio: taking a strong stand today may not turn out well tomorrow

October 8, 2018

Basel III, Europe, Regulatory

ECB, Leverage Ratio, Repo, topstory

The ECB’s publication last week of “The implications of removing repo assets from the leverage ratio” creates a conundrum. On the one hand, the findings stick true to the Basel…

NEX European repo up 10%, US Treasury repo down 4% for September 2018 year over year

October 4, 2018

NEX, Repo

US Repo Fixed Income Clearing Corporation (FICC) volumes climbed back to the 600 billion per day range in September with the return of a handful of specials in the market,…

Tradeweb posts record trade volumes in September 2018

October 4, 2018

For the month of September 2018, Tradeweb Markets set a new record for trade volume. Activity was higher year-over-year and month-over-month in nearly all products on the platform. Average daily…

ECB: removing repo from the Leverage Ratio would be a bad idea

October 3, 2018

ECB, Leverage Ratio, Repo

This article summarises the key findings from a counterfactual exercise where the effect of removing repo assets from the leverage ratio on banks’ default probabilities is considered. The findings suggest…

Electronic RFQ Markets: What’s in it for Dealers?

October 2, 2018

Joanne Crisafi

Fixed Income, Operations, Repo

Repo, RFQ, topstory, Tradeweb

Much of repo markets are still where they were 10 or 20 years ago: high touch and low spread. While dealers have recognized the problem for years, they are now…

Risk: Brexit threatens UK-based banks’ corporate repo funding

September 18, 2018

Brexit, Corporate Bonds, Repo

UK-based trading desks are bracing for tough post-Brexit obstacles to repo trading with the European Union’s non-financial companies – a source of funding that will grow in importance under incoming…

SIFMA Supports OFR Repo Market Data Collection Proposal

September 12, 2018

OFR, Repo, SIFMA, SOFR

In a comment letter filed with the Office of Financial Research, SIFMA expresses its broad support for the OFR’s proposed data collection covering centrally cleared transactions in the U.S. repurchase,…

EMMI cancels European repo index project

September 12, 2018

EMMI, Europe, Repo

The EMMI Board of Directors has decided to stop the efforts toward the production of a pan-European reference index for the secured segment of the euro money market under the…

Tradeweb repo activity up 39% in August 2018 year over year

September 10, 2018

Average daily volume (USD mm): 148,361 Volume (USD mm): 3,412,292

What will jump start Asian corporate bond repo markets? (Premium)

September 5, 2018

Asia, Corporate Bonds, Repo

Asia, Corporate Bonds, Repo, topstory

The ICMA Asia corporate bond survey published last week reiterated that Asian corporate bond liquidity suffers for lack of a liquid repo market. We’ve heard this story before. What will…

Rebuilding tri-party repo for an open architecture model

September 4, 2018

Giancarlo Novello

Custodians, Derivatives, Market infrastructure, Securities Lending, Tri-Party Repo

OTC derivatives, Repo, Securities Lending, SIX, topstory, tri-party

The tri-party repo market was initially developed in the US in the late 70s, early 80s to drive efficiency gains in settlement and reduce operational risks. It then moved across…

Ecuador does $500 million repo deal with Goldman Sachs at LIBOR 3M+4.25%

September 2, 2018

Ecuador, Goldman Sachs, Repo

The deal terms were LIBOR 3M+4.25% for four years. The transaction was part of a capital raising effort of $1.14 billion that included loans from two separate development banks. The…

ICMA: lack of Asian repo liquidity constricts corporate bond market

August 30, 2018

Asia, Corporate Bonds, ICMA, Repo

ICMA has published a report on the state and evolution of the Asia-Pacific cross border corporate bond secondary market. While the report is primarily focused on G3 (USD, EUR, GBP)…

Bloomberg: What Squeeze? Treasury Repo Suggests Shorts Are Not So Extreme

August 23, 2018

Repo, US

For all of the hoopla about data showing speculators’ record net short positions in Treasury futures, the market for repurchase agreements suggests people may be overestimating the potential for a…

Testing the correlation between SOFR and US Treasury rates (Premium)

August 13, 2018

Investments, Repo, SOFR

Repo, SOFR, topstory, US Treasuries

If UST repo is competing with the supply of US Treasuries for cash investors, then higher UST rates should mean that repo cash providers have to provide higher rates, right?…

US short-term rates have no upper bound, and that’s an [opportunity] [problem] (Premium)

August 6, 2018

Interest rates, Repo, US

Repo, topstory, US Treasuries, yield curve

While the Federal Reserve are masters of setting the lower bound on short-term interest rates, the upper bound seems to be bouncing away. The biggest agitator is the US Treasury.…

Finadium Big Ideas Quarterly Q3 2018 now online

August 1, 2018

Collateral Management, Repo

collateral, Finadium, Repo, 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,…

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…

ARRC on a fast pace to transition markets to SOFR (Premium)

July 23, 2018

Repo, SOFR

ARRC, Repo, SOFR, topstory

The Alternative Reference Rates Committee (ARRC) held a robust morning session last week on the market’s progress in adopting the Secured Overnight Financing Rate (SOFR) as an alternative to LIBOR.…

Finadium announces H2 2018 event calendar for New York, London and Zurich

July 11, 2018

Collateral, Liquidity Management, Repo, Technology

collateral, Finadium events, Liquidity, Repo, Securities Lending, technology, topstory

Finadium will enter the fall months with a robust slate of events on technology, collateral, repo and securities lending. Here’s our upcoming calendar of events in New York, London and…

Market consolidation in derivatives and financing on both sides of the Atlantic (Premium)

July 11, 2018

Derivatives, Europe, Repo, US

consolidation, derivatives, Repo, topstory

Market consolidation of banks and dealers has been discussed for a while, but we’re now seeing some moves that make us think we are at the beginning of a significant…

US OFR requests comments on proposed cleared repo data collection rule

July 10, 2018

Alex Tonhazy

LIBOR, OFR, Repo, SOFR

The Treasury Department’s Office of Financial Research is requesting comment on a proposed rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo)…

Dubai Financial Market settles inaugural repo transactions

July 9, 2018

Alex Tonhazy

DFM, Dubai, Repo

Dubai, 8 July 2018; Dubai Financial Market (DFM) today announced it has recently settled its inaugural repurchase (repo) transactions totaling 6 million Gulf Navigation shares and 45 million Drake &…

Electronic RFQ repo markets: The solution for reporting challenges and laying the building blocks for automation

July 5, 2018

Tom Trott

Automation, Europe, Repo

Europe, Repo, RFQ, topstory, Tradeweb

Challenges faced by the repo market including regulatory reporting requirements, reduced balance sheet and fewer resources, have all been well documented. Therefore it comes as no surprise that the use…

SFM Magazine, Summer 2018, is now online

July 2, 2018

Big Data, Collateral Management, Regulatory, Repo, Securities Lending, Technology, Trade Repositories, Tri-Party Repo

Big Data, collateral management, Data repositories, Emerging Markets, Europe, Regulation, Repo, Securities Lending, topstory

Securities Finance Monitor Magazine, Summer 2018, is now online. This edition features articles on what to do with all the data that regulators are collecting, if securities lending is a…

Webinar replay: Securities Finance Data for Investment Decision Making (Premium)

June 27, 2018

Big Data, Repo, Securities Lending

Big Data, Repo, securities finance, Securities Lending, topstory

Finadium presented a webinar on how securities finance data is being used in practice by asset managers as a source of alternative data. Finadium clients can watch the webinar replay…

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…

Is securities lending a model for the future of repo post-trade automation?

June 21, 2018

Todd Crowther

Automation, Repo, Securities Lending, Technology

automation, Pirum, Repo, Securities Lending, technology, topstory

Repo can learn a lot from the securities lending market. Automation in securities lending post-trades processing is at an advanced state whereas repo participants are at various stages of transitioning…

Treasury issuances and Fed rates are changing technicals in the short end (Premium)

June 20, 2018

Jonathan Cooper

Cash management, Federal Reserve, Fixed Income, Interest rates, Investments, Liquidity Management, Money Market Funds, Repo, Short Term Interest Rate Benchmarks, SOFR, US

Fed Funds, Repo, SOFR, topstory, US, US Treasury

As the US Treasury moves to add even more to short dated securities to fill their deficit hole, while at the same time the Fed raises rates and slowly unwinds…

European and US repo markets are different, and that means one-size-fits-all-regulation is unwise

June 13, 2018

Jonathan Cooper

Europe, Market infrastructure, Re-Hypothecation, Regulatory, Repo, Systemic Risk, Tri-Party Repo, US

Europe, Repo, topstory, US

The US and European markets are not identical, although they are often made out to be just that. Besides macro differences, within Europe, transactions are subject to individual country laws,…

Emerging Market Debt Prepares for a Rocky Road Ahead

June 11, 2018

Remy Tavernier

Emerging Markets, Investments, Repo

EMBI, Emerging Markets, Natixis, Repo, topstory

The multi-year bull market in Emerging Markets (EM) debt, and EM corporate fixed income in particular, has been remarkable. The outlook is probably less clear, however, as US interest rate…

The next evolutionary step in US tri-party?

June 7, 2018

Oscar Huettner

Repo, Tri-Party Repo

DEGC, DTCC-Euroclear Global Collateral, Repo, topstory, tri-party, US

The road to US tri-party reform has been long and winding, and has succeeded in mitigating over 90% of daylight credit exposure formerly associated with that market. Yet, structural efficiencies…

Finadium: Beyond the Bulge: Foreign Banks and Smaller Dealers in US Repo

June 6, 2018

Repo, Tri-Party Repo, US

DTCC, FICC, Repo, topstory, tri-party, US

The focus on balance sheet and return on capital constraints faced in the repo business by bulge bracket US banks has often drowned out the vitality of foreign and non-bank…

Finadium/DEGC repo breakfast recap: sharp insights on market structure, technology and future risks (Premium)

June 4, 2018

Repo, Technology, Tri-Party Repo, US

DEGC, Finadium, Repo, topstory, tri-party, US

Finadium and DTCC-Euroclear GlobalCollateral (DEGC) held a repo breakfast update on Thursday, May 31 in New York. We were pleased to welcome 45 market participants across 27 dealer, buy-side and…

Pricing US bilateral, non-tri-party UST repo rates from SOFR (Premium)

May 29, 2018

Interest rates, Repo, SOFR, Tri-Party Repo

bilateral, GCF, Repo, SOFR, topstory, tri-party

News and Notes, News and Notes – Fintech

A bit of data analysis sheds light on what had previously been a hidden aspect of the US repo market: how does pricing look in the non-tri-party, bilateral market compared…

Broadridge gets blockchain patent for repo agreements and proxy processing

May 11, 2018

Anna Reitman

blockchain, Broadridge, Repo