Risk: BofA becomes first US bank to adopt SA-CCR
Bank of America has switched to a new leverage regime 18 months before US banks are required to move, dramatically cutting its total exposure – but finding itself alone among…
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Looking for better market information? Finadium runs 3-6 months ahead of the news cycle
Finadium content often runs three to six months ahead of the popular news cycle. Here’s what we’ve published for clients lately and here’s what we’ve seen months later. Continue reading
Read More US regulators speed up adoption of SA-CCR, extend CECL
The federal bank regulatory agencies today announced two actions to support the U.S. economy and allow banking organizations to continue lending to households and businesses: Allowing early adoption of a…
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The door opens for an SA-CCR in securities finance
The European Systemic Risk Board published last week an innocuously titled document called “Mitigating the procyclicality of margins and haircuts in derivatives markets and securities financing transactions“. The early pages,…
Read More ESRB proposes part of an SA-CCR for securities financing transactions
The European Systemic Risk Board (ESRB) has today published a report on mitigating the procyclicality of margins and haircuts in derivatives markets and securities financing transactions. The report expands on…
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US adoption of SA-CCR means easing for derivatives clearers and incremental liquidity for big banks
You could hear the collective sigh of relief: at last US regulators have issued final rules for adopting the Standardized Approach for measuring counterparty credit risk (SA-CCR). Here’s a review…
Read More US regulators adopt SA-CCR
Three federal bank regulatory agencies on Tuesday jointly announced a final rule updating how certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory…
Read More Finadium Big Ideas Quarterly Q3 2019 now online
Our quarterly presentation on research, news and events. Continue reading
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Winners and losers from the Basel Committee’s Leverage Ratio changes on margin and window-dressing
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…
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Time for an SA-CCR in securities finance
While the focus of recent regulatory conversations has been on derivatives, a missing part of the conversation is support for physical markets through financing activities. Regulators have consistently said that…
Read More Finadium: The US SA-CCR, Derivatives and Securities Finance Competition
New US balance sheet rules for OTC derivatives come into force in January 2020. The US Standardized Approach for measuring counterparty credit risk, better known as SA-CCR, applies Basel III…
Read More Industry associations ask for revisions to US SA-CCR plans
ISDA, SIFMA, ABA, BPI and FIA Comment on Proposed Standardized Approach for Calculating Exposure Amount of Derivatives Contracts Washington, DC, March 18, 2019 – The International Swaps and Derivatives Association,…
Read More World Federation of Exchanges responses to Basel Committee’s Leverage Ratio Consultation
The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, has published its response to the Basel Committee on Banking Supervision’sconsultation on the leverage ratio treatment…
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The US SA-CCR proposal on collateral: generally speaking, good news for the markets (Premium)
US regulators have issued a Notice of Proposed Rulemaking (NPR) for the Standardized Approach for measuring counterparty credit risk” (SA-CCR) in derivatives contracts. This long-awaited proposal shows that US regulators…
Read More US regulators issue Notice of Proposed Rulemaking for SA-CCR
Three federal banking agencies on Tuesday invited public comment on a proposal to update their standards for how firms measure counterparty credit risk posed by derivative contracts under the agencies’…
Read More CCP12 supports SA-CCR, warns against punitive charges to clearing firms
Position of CCP12 in regards to the Basel III Leverage Ratio Framework CCP12 would like to emphasize again its reservations in regards to the Basel III Leverage Ratio (LR) and…
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Don’t delay: it’s time to adopt SA-CCR
The Standardised Approach to measuring counterparty credit risk (SA-CCR) was proposed in 2014 by the Basel Committee as an alternative to the Current Exposure Method (CEM) for measuring derivatives risk.…
Read More Fed’s Powell says recalibrated Leverage Ratio, no capital for collateral and move to SA-CCR all on the table for CCP clearing benefits
Central Clearing and Liquidity Governor Jerome H. Powell At the Federal Reserve Bank of Chicago Symposium on Central Clearing, Chicago, Illinois — Having pushed for the move to greater central…
Read More OCC Says Implementation of SA-CCR Important For Liquid and Orderly Listed Options Markets
By John Fennell, OCC Executive Vice President and Chief Risk Officer April 25, 2017 As the agency for all U.S. options exchanges and in our role as a Systemically Important…
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How much regional disparity is there really in Basel III adoption? (Premium)
We talk a lot about how different regions are at different points of adoption for Basel III. It’s easy to point out specific categories like the Leverage Ratio where some…
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Finadium: Regulatory Costs of OTC Derivatives vs. Securities Finance Transactions
Basel III, Delta One, Derivatives, Hedge Funds, Prime Brokerage, Regulatory, Repo, Securities Lending
This Finadium report evaluates regulatory costs in order to determine whether internal balance sheet treatment will push the market towards OTC derivatives in place of Securities Finance Transactions (SFTs, including…
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Will Basel III rules mean that seclending and repo get swallowed up by OTC derivatives? (Premium Content)
While the title of this article may sounds provocative, its actually a serious question. Recent Basel III rules on the Comprehensive Approach for securities lending credit risk analysis vs. the…
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