Repo

Hong Kong-headquartered CoinFLEX, a physically delivered cryptocurrency futures exchange, announced the launch of its centrally traded repo market. The repo market aims to bridge the gap between directional perpetual traders,…

Reuters: Bank of Korea plans to provide dollars to financial firms via repo operations

June 30, 2020

Bank of Korea, Repo, South Korea

South Korea’s central bank said on Tuesday it plans to provide dollar funds to local financial firms via repurchase agreements to stabilise the foreign exchange market if volatility rises due…

New Eurosystem repo facility to provide euro liquidity to non-euro area central banks

June 25, 2020

ECB, Repo

Eurosystem repo facility for central banks (EUREP) introduced as precautionary backstop to address pandemic-related euro liquidity needs outside euro area EUREP to allow broad set of central banks to borrow…

Broadway Technology’s CTO on outsourcing repo tech (Premium)

June 17, 2020

Anna Reitman

Repo, Technology

Broadway Technology, data management, outsourcing, Repo, topstory

During the pandemic, fixed income and foreign exchange markets had to operate with increased volumes and volatility, alongside a distributed staff, while central banks issued debt to influence liquidity provision…

Montréal Exchange Launches CORRA Futures

June 15, 2020

Canada, Montreal Exchange, Repo

Montréal Exchange (MX), Canada’s derivatives exchange, today announced the launch of CORRA Futures, a new three-month futures contract based on the Canadian Overnight Repo Rate Average (CORRA) benchmark. The launch…

Bank of Canada becomes administrator of Canadian Overnight Repo Rate Average (CORRA)

June 15, 2020

Bank of Canada, CORRA, Repo

The Bank of Canada is now the administrator of the Canadian Overnight Repo Rate Average (CORRA) and will post today the first rate calculated using an improved methodology. The Bank…

Fed to slowly raise repo rates

June 12, 2020

How bank treasury managers allocate balance sheet and implications for repo (Premium)

June 11, 2020

banks, Federal Reserve, Repo, topstory, Treasury

An important question for any collateralized trading desk is how much balance sheet (or “sheet”) they have to work with. This is typically determined by a central bank treasury department…

Federal Reserve releases results of survey of senior financial officers at banks about their strategies and practices for managing reserve balances

June 1, 2020

Balance sheets, Federal Reserve, IOER, Repo

February 2020 Senior Financial Officer Survey Key takeaways from the survey included the following: Survey respondents indicated that their LCLoR (lowest comfortable level of reserves), given the constellation of short-term…

Do low US repo rates mean the Fed should increase asset purchases… or lay off? (Premium)

June 1, 2020

Federal Reserve, Repo, US

Federal Reserve, investments, money market funds, Repo, topstory, US

Low US repo rates for most of April and May, with a slight uptick only last week as some cash demand left the market, makes us wonder if the Federal…

BrokerTec and TriOptima add UTIs for end-to-end repo workflow solution

May 28, 2020

BrokerTec, Repo, TriOptima

BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, and TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives…

The changing role of the hedge fund Treasury manager

May 20, 2020

Hedge Funds, Investments, Repo

hedge funds, Repo, topstory, Treasury

The COVID-19 epidemic is showing the importance of hedge fund Treasury departments including portfolio finance, cash and collateral management. The complexity of the task is emphasized by working from disaster…

Fed discontinuing three month repo operations

May 15, 2020

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of large-scale overnight and term repurchase agreement (repo) operations for the…

Are primary dealers capacity constrained, and should asset managers become primary dealers too?

May 12, 2020

Federal Reserve, Primary Dealers, Repo

asset managers, Bloomberg, Federal Reserve, primary dealers, Repo, topstory

This article is free with registration. An article in Bloomberg last week cited concern about primary dealer capacity along with a suggestion by PIMCO that asset managers be allowed to…

MTS launches MTS Depo for unsecured money market trading

May 5, 2020

MTS, MTS Depo, Repo

MTS, part of London Stock Exchange Group, has launched MTS Depo, a new electronic multilateral exchange system for European unsecured money market trading denominated in Euros. Trading has already begun…

SFM Magazine, Spring 2020, is now online

May 5, 2020

Blockchain, Collateral Management, Repo

collateral management, Repo, Securities Finance Monitor, topstory

Securities Finance Monitor Magazine, Spring 2020, is now online. This digital-only special edition features articles on agency repo, hedge fund Treasury management, software and data, collateral trading, cross-product settlements, and…

Finadium Big Ideas Quarterly Q2 2020 now online

May 4, 2020

Repo, Securities Lending

hedge funds, Prime Brokerage, Repo, Securities Lending, topstory

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

Fed’s bond buying is now showing up in primary dealer statistics (Premium)

April 28, 2020

Federal Reserve, Primary Dealers, Repo

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

With a short lag as liquidity worked its way into the system, we can now see some impacts of the Fed’s bond buying in primary dealer reported positions and financing…

Bloomberg: SocGen marketing quant equity repo index strategy

April 23, 2020

Repo, Societe Generale

SocGen is touting a rules-based strategy that mimics repo trades used by hedge funds, which have long arbitraged the difference charged between short- and long-term borrowing against assets. The idea…

Repo Liquidity as a Solution to (Un)cleared Derivatives Cash Margin Requirements

April 23, 2020

Frank Odendall

Collateral Management, Derivatives, Europe, Repo, Uncategorized

derivatives, Deutsche Borse, Eurex, Europe, Margin, Repo, topstory, UMR, Uncleared Margin Requirements

Entities in the scope of phases five and six of the Uncleared Margin Rules (UMR) will need reliable and efficient access to cash in order to manage their daily OTC…

What needs to happen for US repo to regain spreads? (Premium)

April 20, 2020

Federal Reserve, Repo, US

Federal Reserve, GCF, IOER, Repo, SOFR, topstory, US

At the end of 2018, US repo traders told us that they were no longer worried about liquidity but spreads were a big concern. Calendar year 2019 saw liquidity pitfalls…

Fed plans to reduce afternoon and some term repo liquidity operations

April 14, 2020

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of large-scale overnight and term repurchase agreement (repo) operations for the…

Finadium: The User Experience of Electronic Repo Trading in Europe

April 14, 2020

Europe, Repo, Technology

electronic trading, Europe, Finadium, Repo, technology, topstory

In this report, Finadium delivers the results of conversations with over a dozen market participants using electronic repo trading platforms. We heard from these firms what’s working and what isn’t,…

Secured and Unsecured Funding: The Drive Towards Cross-Product Settlements Automation

April 9, 2020

Tim Martins

Europe, Repo

depo trading, ECB, Europe, MTS Markets, Repo, T2S, topstory

As the funding profile of European banks continues to mature, MTS finds that a diversity of product types across secured and unsecured are still necessary and in use. There is…

Monday News Roundup: new data, fast moving regulations, repo trends and more (Premium)

April 6, 2020

Repo, Securities Lending

Federal Reserve, Leverage Ratio, Regulatory, Repo, Securities Lending, Short selling, topstory

These are tough times to follow what’s happening: nearly every day seems like it brings major pieces of news that in ordinary times would warrant consideration, but now it’s just…

Agency Repo: A New Outsourced Option for Europe

April 2, 2020

Christian Regis

Europe, Repo

Europe, Repo, Societe Generale, topstory

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…

Fed launches temporary repo facility for foreign monetary authorities’ US Treasury holdings

March 31, 2020

Federal Reserve, Repo, US Treasuries

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…

Bloomberg: Japan Repo Rates Hit Most Expensive on Record in Dollar Rush

March 26, 2020

Bank of Japan, Bloomberg, Japan, Repo

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…

Six charts you should see this week (Premium)

March 26, 2020

Collateral Management, Federal Reserve, Money Market Funds

collateral, Federal Reserve, Repo, topstory

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…

Bank of Japan announces additional measures to stabilize repo and securities lending markets

March 25, 2020

Bank of Japan, Repo, Securities Lending

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…

Bank of England launches Contingent Term Repo Facility

March 24, 2020

Bank of England, Repo

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…

Agency REITs see margin stress in mortgage and repo markets

March 24, 2020

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…

Bloomberg: Before Fed Acted, Leverage Burned Hedge Funds in Treasury Trade

March 21, 2020

basis trade, Bloomberg, hedge funds, Leverage, Repo

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,…

Fed expands asset purchases by sector, offers $500 billion in term repo operations

March 12, 2020

asset purchases, Federal Reserve, Repo

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…

Central banks can’t solve the coronavirus but are succeeding in a key area

March 12, 2020

Federal Reserve, Regulatory

Central Banks, Countercyclical Capital Buffer, Federal Reserve, Repo, topstory

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…

Fed increases repo liquidity for the next month to $175b overnight and $45b two week term

March 12, 2020

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…

Barclays: US liquidity conditions and funding stresses could push Fed to Standing Repo Facility

March 9, 2020

Anna Reitman

Fed, Repo, 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…

Fed increases repo operations this week in proactive move to ease liquidity concerns

March 9, 2020

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…

Is US repo heading for trouble? Here’s the story in five charts (Premium)

March 9, 2020

Federal Reserve, Repo, SOFR

Federal Reserve, GCF, IOER, Repo, SOFR, topstory

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…

Finadium updates: new mutual fund seclending data, SOFR Averages, events and review of market predictions

March 5, 2020

Securities Lending, SOFR

Big Data, Finadium, Repo, Securities Lending, SOFR, topstory

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…

Global force majeure creep into the collateral world (Premium)

March 3, 2020

Collateral Management, Derivatives, Repo

China, collateral management, coronavirus, Force majeure, Repo, topstory

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…

Reuters: JPM reducing Fed reserves, putting $50b+ into repo, starting to use Fed discount window

February 26, 2020

Discount Window, JPMorgan, Repo

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,…

ICMA’s ERCC publishes guide to reporting under the SFTR

February 24, 2020

ERCC, ICMA, Repo, 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…

Open market operations, QE or the discount window, it’s still large-scale Fed repo liquidity provision

February 18, 2020

Discount Window, Federal Reserve, Repo, topstory

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…

Global repo news: Sweden’s Riksbank goes positive, the Fed wants out and China keeps liquidity going

February 13, 2020

Repo

ECB, Federal Reserve, People's Bank of China, Repo, Riskbank, topstory

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…

Webinar replay: Client training on Finadium’s securities lending, repo and hedge fund databases (Premium)

February 5, 2020

mstan

Hedge Funds, Prime Brokerage, Repo, Securities Lending

Data, hedge funds, mutual funds, prime brokers, Repo, Securities Lending, topstory

Finadium clients can access the webinar replay here. Continue reading

Finadium Big Ideas Quarterly Q1 2020 now online

February 5, 2020

Asia, ESG, Market infrastructure, Repo

Asia, Big Data, ESG, FISL, Repo, Securities Lending, topstory

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

Tradeweb reports repo trading ADV up 36.5% in January 2020, to record ADV of $234 billion

February 5, 2020

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…

Reuters: Swiss National Bank reintroduces repos to steer interest rate

February 2, 2020

Repo, Swiss National Bank