Finadium: Evolution of the Total Return Swaps Market
In this report, we examine the current state of the Total Return Swaps (TRS) market through conversations with major market participants and a review of bank financial statements. Our conversations...
View ArticleNew data on prime brokerage financing revenues (Premium)
As part of our report this month on Total Return Swaps (TRS), we sized prime broker revenues for physical (cash) financing and synthetic financing. We were aided in this task by key disclosures in bank...
View ArticleUS tax code section 871m is making changes in the swaps markets
In the world of tax reform and financial markets, 871m is an important one to keep track of. This change to the US Internal Revenue Code aims to stop an arbitrage by non-US entities trading derivatives...
View ArticleLessons from FISL 2018: alpha generation in securities lending takes on new...
“Alpha” in the context of securities lending is itself a controversial term, with some participants arguing that it’s a euphemism for optimizing transaction costs. But in a purely definitive sense,...
View ArticleThe ECB finds risk in ETF securities lending and TRS – is this real or a...
The European Central Bank released their Financial Stability Report last week, including a feature on counterparty risk in synthetic and physical ETFs. We find some valid points in the analysis...
View ArticleThe buzz on Total Return Futures (Premium)
The markets are starting to talk more about Total Return Futures (TRF) as a realistic alternative to Total Return Swaps (TRS), which themselves are competition for securities finance products. TRFs...
View ArticleFive predictions for securities lending for 2019 (Premium)
2018 was a good year for securities lending both financially and in the evolution of the business. 2019 promises to offer more interesting times. We offer our predictions for market trends to expect...
View ArticleThree ways to jump-start securities finance volumes (Premium)
Securities finance volumes are in the doldrums after a robust Q1-Q3 2018, leaving some market participants wondering when revenues will return. Solutions are around the corner however, and can...
View ArticleFinadium: Total Return Futures, Total Return Swaps and the Repo Market
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 are expanding their...
View ArticleSGX launches Total Return Futures: why Asia, why now and what’s next (Premium)
Singapore Exchange is first to launch a Total Return Futures product in Asia, following in the footsteps of CME in the US and Eurex in Europe. It’s based on the Nikkei 225 Index, a listed solution that...
View ArticleEquiLend launches Swaptimization platform
EquiLend, the global technology company for the securities finance, collateral and swaps industries, today launched the Swaptimization platform to automate the total return swaps (TRS) market. Building...
View ArticleWebinar replay: An Intro to Collateralized Transactions for Students and New...
Finadium clients can access the webinar replay and slides here.
View ArticleHigher swaps margin costs + lower RWA for CCPs = more securities finance...
In the most positive turn of events for securities finance in some time, there is reason to think that the next few years should see a nice uptick in volumes thanks to a couple of combined forces.
View ArticleTurquoise NYLON on the move to clearing for Total Return Swaps (Premium)
In equity swaps markets, initiatives for reducing processing costs are moving up the priority list for both sell- and buy-sides. We speak with Shaun Miell, Turquoise NYLON’s global head, and Sean...
View ArticleRisk: Mind the tax when hedging TRS
Total return swaps (TRS) rarely appear in the pages of Cutting Edge. This is partly because they do not require complex pricing models. However, their valuation is still affected by a number of factors...
View ArticleReader feedback on our report, “Leverage Ratios, SA-CCRs and Securities...
Few topics in capital markets can create excitement like Basel regulations. Following the release of our report last week, “Leverage Ratios, SA-CCRs and Securities Finance,” we received insightful and...
View ArticleFinadium: Total Return Swaps and Bank Resource Optimization
This Finadium report investigates current dynamics in the Total Return Swaps market with a focus on bank resource optimization. We deliver market sizing through H2 2020 and analyze the dynamics that...
View ArticleSynthetic prime brokerage revenue now bigger than physical financing revenue...
A new study from Finadium finds that for the first time, prime brokerage revenues from synthetic financing have outstripped revenues from physical securities financing including securities borrows and...
View ArticleGoldman Sachs and AccessFintech Launch Derivatives Cash Payments Affirmation...
AccessFintech, a leading fintech company evolving the financial operating model through data and workflow collaboration, announces the launch of a new derivatives cash payments affirmation service,...
View ArticleRepo, Total Return Swaps and collateral competition (Premium)
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 Return Swaps (TRS) and...
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