Repo

Bank of England, Liquidity, Repo

The impact of leveraged investors on market liquidity and financial stability Speech given by Sir Jon Cunliffe, Deputy Governor Financial Stability, Member of the Financial Policy Committee, Member of the…

Rates & Repo 2020: Electronic Trading and CCP Clearing in Repo

November 16, 2020

Finadium is pleased to present this Rates & Repo webinar replay, originally held on November 10, 2020. The discussion centers on what’s happening and what’s next for cleared repo, important…

Fed raises term repo operations rate to IOER + 10 bps

November 13, 2020

Federal Reserve, Repo, temporary open market operations

Monthly Schedule of Overnight and Term Repurchase Agreement Operations The Desk plans to conduct overnight repo operations on each business day and a series of term repo operations. The aggregate…

Harvard professor: hedge funds not responsible for March 2020 US Treasury dislocation

November 13, 2020

hedge funds, Repo, US Treasuries

The Role of Hedge Funds in the 2020 Treasury Market Turmoil Marco Di Maggio This paper provides new evidence about the behavior of hedge funds during the disruptions that occurred…

ASIFMA publishes Asia repo market survey

November 12, 2020

Anna Reitman

APAC, ASIFMA, Repo

ICMA’s European Repo and Collateral Council (ERCC) and ASIFMA have published the results of a second survey of the Asia-Pacific repo market. Using similar methodology to the long-established ICMA ERCC…

Finadium: US Repo Participants on Market Conditions and Prospects for 2021

November 12, 2020

Regulatory, Repo

Repo, topstory, US

For this report, Finadium surveyed 26 repo market participants across dealers, money market funds, hedge funds and REITs to hear their views on market conditions at the end of 2020…

Repo, Total Return Swaps and collateral competition (Premium)

November 10, 2020

cleared repo, Derivatives, Repo, Total Return Swaps

Repo, topstory, Total Return Swaps

For some dealers, repo is now viewed as part of the collateral businesses and not an independent function. It can already be part of a broader business unit including Total…

US Treasury will borrow $617 billion in Q4 2020, down $599 billion from earlier projections

November 3, 2020

The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing for the October – December 2020 and January – March 2021 quarters. During the…

Global Capital: debate on whether the ECB should remove repo-eligible securities on environmental grounds

October 29, 2020

collateral, ECB, environmental finance, Repo

From the author’s website, Anthopocene Fixed Income Institute: We opine that it is illogical for the European Central Bank to effectively provide cost-of-capital subsidies for the Canadian province of Alberta…

BrokerTec Announces Launch of Dealer-to-Client Execution Platform for U.S. Repo Markets

October 26, 2020

BrokerTec, BrokerTec Quote, Repo, US

BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced its dealer-to-client request for quote (RFQ) trading platform, BrokerTec Quote, is now available…

What’s new in the US NSFR final rule (Premium)

October 26, 2020

Regulatory

NSFR, OTC derivatives, Repo, topstory, US

US regulators released their final draft rules of the Net Stable Funding Ratio last week, in spite of calls for delays or scrapping this poorly designed regulation altogether. The go-live…

SFTR’s inclusion of buy-side data brings new trends and questions (Premium)

October 26, 2020

Europe, Regulatory

Europe, Repo, Securities Lending, SFTR, topstory

When dealing with SFTR data, its a good idea to look underneath the headlines for more information. The inclusion of buy-side data to SFTR Trade Repository reports last week was…

Key takeaways from our webinar “UMR and Securities Finance in Europe” (Premium)

October 20, 2020

Derivatives, Europe, Repo, Securities Lending

Eurex, Europe, Natixis, Repo, securities finance, topstory, UMR

Our October 6, 2020 webinar on uncleared margin rules (UMR) and securities finance in Europe yielded some new insights along with data on how market participants are approaching the convergence…

How asset managers consider counterparty exposure on FICC sponsored repo (Premium)

October 19, 2020

CCP, Repo

asset managers, FICC, Repo, sponsored repo, topstory

In a recently conducted survey of US repo participants, we heard five different ways that US money fund managers are considering the percent of their repo counterparty exposure towards FICC.…

ECB working paper finds direct relationship between ECB refinancing operations rate and bank default risk

October 12, 2020

ECB, Repo

The (unobservable) value of central bank’s refinancing operations Ugo Albertazzi, Lorenzo Burlon, Tomas Jankauskas, Nicola Pavanini We quantify the impact that central bank refinancing o perations a nd f unding…

Metal Bulletin: Shanghai’s billion-dollar metal hoard under spotlight as banks depart from repo deals

October 8, 2020

metal, Repo, Shanghai

The world’s largest metals stockpile is becoming more difficult to finance. That is a problem for those who trade it, and for metal markets in general. Shanghai’s Yangshan bonded zone…

UMR and Securities Finance in Europe

October 6, 2020

Derivatives, Europe, Repo, Securities Lending, Webinars

OTC derivatives, Repo, securities finance, topstory, UMR

Finadium held a webinar on the market forces driving collateral integration of OTC derivatives, securities finance and repo, with uncleared margin rules as one of several drivers. Presented in partnership…

ISDA Publishes Proposal for Greater Collaboration Between Derivatives and SFT Markets

October 5, 2020

ISDA, OTC derivatives, Repo, securities finance

The International Swaps and Derivatives Association, Inc. (ISDA) has today published a new whitepaper that identifies opportunities for greater collaboration between derivatives and securities financing transaction (SFT) markets, and sets…

Implications of ISDA’s proposal, “Collaboration and Standardization Opportunities in Derivatives and SFT Markets” (Premium)

October 5, 2020

Common Domain Model, Derivatives, Repo, Securities Lending, Technology

Common Domain Model, ISDA, OTC derivatives, Repo, securities finance, technology, topstory

ISDA released a proposal paper today that should be considered carefully by every market participant in OTC derivatives, securities finance and repo for its pros and cons. In Collaboration and…

Natixis’s Bertrand Bordais, Government Bond Repo Head for GSF, on EU repo market conditions and the outlook for the coming year

October 1, 2020

Basel III, ECB, Europe, Repo

Europe, European Central Bank, Leverage Ratio, Natixis, Repo, topstory

Securities Finance Monitor recently spoke with Bertrand Bordais, Global Head of MM Government Bond Repo of the Global Securities Financing team at Natixis. Bertrand shared his views on the European…

SEC proposes to apply Reg ATS to electronic fixed income markets including repo

September 28, 2020

Fixed Income, Reg ATS, Repo, sec

The Securities and Exchange Commission today announced a proposal to enhance the operational transparency, system integrity, and regulatory oversight for alternative trading systems (ATSs) that trade government securities as well…

ICMA publishes updated Guide to Best Practice in the European Repo Market

September 24, 2020

ERCC, Europe, ICMA, Repo

The ICMA European Repo and Collateral Council (ERCC) is the principal industry standards setting body for the European repo market. To this end, the ERCC publishes, and routinely updates, the…

Charts on funding activity from US Treasuries, Fed assets and money funds

September 24, 2020

Repo

Federal Reserve, market markets, money funds, Repo, topstory, US Treasuries

The scale of funding market disruption over the last year from COVID-19, low interest rates and political disputes is often discussed, but it’s something else to see the data in…

A contrarian argument for tighter liquidity in US repo through year end (Premium)

September 21, 2020

Repo

Repo, topstory, US repo, volatility

A variety of market commentators are projecting calm US funding market conditions for the foreseeable future. The summer has certainly proven stable. That said, we can see a number of…

Finadium goes live with SFTR database, adds OFR repo to Repo Analytics tool

September 16, 2020

Regulatory, Repo, Securities Lending

Finadium, Repo, SFTR, topstory

Following our successful beta test, Finadium has gone live with client access to Securities Financing Transactions Regulation (SFTR) data. We are also now capturing and presenting repo data from the…

The big advances in OFR’s new repo data sets (Premium)

September 14, 2020

Repo

OFR, Repo, topstory, US

The US Office of Financial Research’s (OFR) release last week of daily repo data will benefit transparency for both the industry and systemic risk oversight. Finadium clients can now access…

Office of Financial Research releases US repo funding data

September 9, 2020

OFR, Repo, US

The U.S. Office of Financial Research (OFR) released its new U.S. Repo Markets Data Release, a prototype publication of daily data on repo markets, and unveiled the Short-term Funding Monitor,…

Finadium, Eurex and Natixis to host webinar on UMR and securities finance on 6 October

September 9, 2020

Derivatives, Regulatory, Repo, Securities Lending

Repo, Securities Lending, topstory, UMR

Finadium subscribers and friends of Natixis and Eurex are invited to attend a discussion on Uncleared Margin Rules and their impact on the securities finance market, including repo and securities…

Doors open for international access to China’s huge securities finance markets

September 3, 2020

China, Custodians, Repo, Securities Lending

Blackrock, China, Citi, Custody, JP Morgan Asset Management, Repo, Securities Lending, topstory

China’s securities markets are enormous, at over US$23 trillion in bonds and equities, and so is its repo and securities finance business. New rules allowing international firms to apply for…

People’s Bank of China promotes repo as benchmark interest rate

August 31, 2020

benchmark rates, China, People's Bank of China, Repo

The People’s Bank of China Publishes the White Paper Participating in International Benchmark Interest Rate Reform and Improving China’s Benchmark Interest Rate System Although China started late, compared internationally, in…

Thailand SEC requests comments on plan to allow retail investor access to repo and reverse repo

August 27, 2020

Thailand SEC public hearing on drafted amendment regulations on repurchase or reverse repurchase agreement (repo/reverse repo) of the securities companies and the derivatives intermediaries Previously, the SEC conducted a public…

Paper: The Collateral Supply Effect on Central Bank Policy

August 24, 2020

derivatives, Federal Reserve, OTC derivatives, Repo

Carolyn Sissoko University of the West of England (UWE) This paper starts by describing the evolution of US money markets over the course of the 1990s and the 2000s. The…

BNYM: The Pandemic Stress Test: US Government Securities Clearance & Repo

August 19, 2020

The volatility of March 2020 represented the most serious test for US capital markets since the 2008 global financial crisis. Repo markets came under particular pressure as investors sought to…

ECB: Liquidation Value and Loan Pricing: Evidence From Repo Markets

August 19, 2020

collateral, ECB, Repo

Francesca Barbiero European Central Bank (ECB) Glenn Schepens ECB -Financial Research Division Jean-David Sigaux European Central Bank (ECB) We show that the liquidation value of collateral depends on who is…

As 30 year Treasury yields rise, the options are intervention or market stress (Premium)

August 17, 2020

Federal Reserve, Primary Dealers, Regulatory, Repo, Uncategorized

Federal Reserve, Regulation, Repo, topstory, US Treasuries, US Treasury

Will it be Fed market intervention, regulatory intervention, or financing rates rising again in a stress period? Last week’s US Treasury issuance tells the story of similar root causes to…

Finadium: Leverage Ratios, SA-CCR and Securities Finance: The New Regulatory Costs of Business

August 11, 2020

Derivatives, Repo, Securities Lending

Basel III, Basel IV, OTC derivatives, Repo, securities finance transactions, Securities Lending, topstory

The cost of balance sheet from different types of financial transactions that have a similar economic impacts drives how business gets done. In this report, Finadium delves into the Leverage…

Fed blog recaps March Fed repo operations and results

August 3, 2020

Federal Reserve, Liberty Street, Repo

The Federal Reserve’s Large-Scale Repo Program The repo market faced extraordinary liquidity strains in March amid broader financial market volatility related to the coronavirus pandemic and uncertainty regarding the path…

GLMX and Adroit partner on repo workflows

July 29, 2020

Adroit, GLMX, Repo

Adroit Trading Technologies, LLC (Adroit) and GLMX Technologies, LLC (GLMX) have formed a strategic alliance that integrates Adroit’s multi-asset order and execution management system (O/EMS) with GLMX’S electronic securities financing…

The CCP argument for collateral standardization and sponsored clearing post-COVID-19 (Premium)

July 28, 2020

CCP, Collateral Management, Repo

CCPs, collateral management, LCH, Repo, topstory

On a recent ICMA podcast, James Upton, Commercial Services Director at LCH and co-chair of the ERCC Operations Group, made the case for the use of CCPs to standardize collateral…

A renewed focus on hedge fund risk in US Treasury repo, options and the basis trade (Premium)

July 27, 2020

Financial Stability Board, Fixed Income, Regulatory, Repo

basis trade, Financial Stability Board, gamma scalping, hedge funds, Office of Financial Research, Repo, topstory, US Treasuries

Three recent publications suggest that the loose path of regulation for hedge fund risk may be coming to a close. One in particular has some sharp teeth; we may see…

ICMA: Almost 1.5 million trades reported under SFTR in week one

July 22, 2020

Europe, ICMA, Repo, SFTR

Since 13 July 2020, EU-incorporated and located banks and investment firms, as well as CCPs and CSDs, have had an obligation to report all new SFTs and subsequent life-cycle events…

Bank of Canada announces new securities repo operations

July 21, 2020

In line with its objectives to support core funding markets and to foster the well-functioning of the Government of Canada securities market, the Bank of Canada is announcing the introduction…

Office of Financial Research: Basis Trades and Treasury Market Illiquidity

July 16, 2020

basis trade, Office of Financial Research, Repo, treasuries

The Treasury futures basis trade seeks to exploit the price difference between cash Treasury securities and Treasury futures. This brief summarizes evidence on the size and extent of basis trading…

Repo markets: COVID-19, the validation of the electronification model and SFTR

July 16, 2020

Tom Trott

Repo, RFQ, SFTR

Repo, SFTR, topstory, Tradeweb

‘Working from home’ and delayed SFTR launch are two notable outcomes of the Covid-19 crisis. A guest post from Tradeweb. Continue reading

Does the world need an ECB repo facility for central banks?

July 7, 2020

ECB, Europe, Repo

European Central Bank, Repo, topstory

The European Central Bank’s (ECB) recent decision to provide a Euro repo facility to non-Euro area central banks through June 2021 was an interesting one, suggesting that like the dollar,…

Fed shift to afternoon repo operations helps pricing but not volumes (Premium)

July 6, 2020

Federal Reserve, Repo, US

Federal Reserve, Repo, topstory, US

The decision by the Federal Reserve effective June 22, 2020 to move repo operations to the afternoon is showing up in higher US Treasury repo rates. Both the data and…

HK crypto exchange launches centrally cleared and traded repo market

July 1, 2020

Anna Reitman

News and Notes – Fintech

crypto derivatives, crypto exchanges, Hong Kong, 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