Repo

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

mstan

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

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