Friday, November 20, 2015

FSB Finalizes Standards and Processes for Global Securities Financing Data Collection and Aggregation

Author: Member Admin

On November 18, 2015, the Financial Stability Board (FSB) published its final Standards and Processes for Global Securities Financing Data Collection and Aggregation. The final standards are based on the FSB’s previous November 2014 consultation paper and define the data elements for securities lending, repo, and margin lending that national and regional authorities will be asked to report in aggregate to the FSB.

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Thursday, February 12, 2015

CSMFE Submits Comments on FSB Data Collection Proposals

Aircraft pilots cannot monitor risks based solely on altitude; neither can market supervisors.

Author: David Schwartz
CSFME has submitted a comment letter identifying additional metrics the Center feels are necessary to properly assess the risk of collateral fire sales associated with securities lending transactions.  In particular, CSFME asserts that the FSB and sovereign regulators must expand the data initiative beyond position aggregates, to include risk mitigation resources as well as termination activity.
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Wednesday, January 21, 2015

SEC Adopts New Rules Governing Security-Based Swaps Transactions

Author: David Schwartz

The SEC has issued final rules governing security-based swap data repositories (SDRs) prescribing reporting to regulators and setting public disclosure requirements for security-based swap transaction data.  These new rules implement mandates under Title VII of the Dodd-Frank Act requiring the SEC and CFTC to regulate swaps markets. The final rules approved by the Commission on January 14, 2015 "provide a powerful framework for trade reporting and the public dissemination of information that addresses blind spots exposed by the financial crisis.”   

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Wednesday, November 12, 2014

Benchmarking data called into question

FX fines undermine validity of bank-provided financial rates

Author: Ed Blount

Convenience and low cost have always been the prime motives for customers to use bank-provided benchmarks in their portfolio analytics. That user model, shaken by the Libor scandal, now seems upside down after US, UK and Swiss regulators fined 5 major banks more than US$3 billion for rigging FX rates in London.  Going forward, bottom-up benchmarks based on customer reported activity may displace the banks' own rate reporting. 

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Friday, September 13, 2013

FSB Issues its Final Policy Framework on Sec Lending and Repo

Author: David Schwartz
On August 29, 2013, the Financial Stability Board (FSB) issued its finalized policy framework for its securities lending and repo workstream. As part of a larger examination of shadow banking, the FSB focused on five specific areas in which policies are needed to mitigate the potential systemic risks associated with shadow banking, with one of these five areas being securities lending and repo. Following up on their November 2012 consultation paper, the FSB has issued its final Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos. This document sets out recommendations for addressing financial stability risks in this area, including enhanced transparency, regulation of securities financing, and improvements to market structure. It also includes consultative proposals on minimum standards for methodologies to calculate haircuts on noncentrally cleared securities financing transactions and a framework of numerical haircut floors.
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