Finadium

Decentralized Finance (DeFi) has the business process, operations and technology necessary to return banks to the level of profitability they had before the global financial crisis (GCF). While DeFi has so far been aspirational, adopting related technologies will generate the return on equity (RoE) reward that matters. Stephen Malekian More on #finadium: https://lnkd.in/eSXD7Y6U

It’s been an interesting few years trying to navigate along revenue trends in securities financing markets results. We hear from Nancy E. Allen, head of Data & Analytics at EquiLend, about the story markets data are telling and how that’s rolling into Q4. Anna Reitman More on #finadium: https://lnkd.in/e9vkRdVM

Finadium News & Opinion has created a round-up of monthly and quarterly statistics releases from across repo, securities lending, collateral, cross-product and other securities finance-related markets published throughout November, providing a broad overview of backwards-looking market dynamics. In this round-up, we feature figures from Bank for International Settlements, Baton Systems, BrokerTec & CME Group, Clearstream, CLS, DataLend & EquiLend, Eurex Repo, Hazeltree, LCH RepoClear, Options Clearing Corporation, MTS Repo, S3 Partners, S&P Global, SWIFT, and Tradeweb. Anna Reitman More on #finadium: https://lnkd.in/ejVp7a_J

Fidelity Prime and Stone Coast recently announced they’re bundling services for hedge funds that combines administration, prime brokerage, and fintech-enabled portfolio optimization as well as “golden source” data. We hear from Kevin Cullen, CFA, senior vice president and head of PB Optimize at Fidelity Investments, and Rob Larson, director of Business Development at Stone Coast Fund Services, about the details and how securities financing fits in. Anna Reitman More on #finadium: https://lnkd.in/exZ52BWh

A line up of Republican officials and other conservatives have said that they think Basel III is unfair to the US and takes away the country’s sovereignty. Calls to remove Basel III aren’t inherently wrong but many of these commentators have no alternatives, just the idea that the US must exit. Our question is, what are these people actually referring to and what could replace Basel III if it is removed in the US? That’s where things get dicey. More on #finadium: https://lnkd.in/eu7n4ukg

The more that securities financing goes electronic, the more that its role as “alternative data” for alpha and risk comes to the fore. We’re hearing about different ways that’s happening across numerous conferences representing a wide variety of market actors, and report on how artificial intelligence (AI) techniques specific to repo are being applied to post-trade data by London Reporting House . Anna Reitman More on #finadium: https://lnkd.in/eJ-kD5-F

US quarter-end came with repo market stress, which saw a double-digit rates spike and an uptick in standing repo facility use. That’s focused attention on funding pressures as the Fed’s quantitative tightening program progresses against the backdrop of a policy shift from abundant to ample reserves. How concerned should market participants be, and how will the repo market know when we reach an ample reserves environment? We review recent comments from Robert Perli, manager of the System Open Market Account (SOMA) at the New York Fed, and hear from Stephen Malekian, securities finance expert, about why some market participants believe the repo market is headed for year-end volatility. Anna Reitman More on #finadium: https://lnkd.in/eB-EqB-N

We’re seeing evidence of pension plans and sovereign wealth funds (SWF) around the world interacting with the market more like hedge funds than ever before. This has shown up as well in Finadium’s own client growth in 2024, which saw a sharp increase in new subscribers and conference attendees from this segment. When looking at a large pension or SWF today, it should be assumed that these entities already have a funding and financing desk set up or are considering how to get there. More on #finadium: https://lnkd.in/eg3fRWEf

The European Securities and Markets Authority (ESMA) published its Final Report providing the assessment of the shortening of the settlement cycle in the European Union (EU). The report highlights that the increased efficiency and resilience of post-trade processes that should be prompted by a move to T+1 would facilitate achieving the objective of further promoting settlement efficiency in the EU, contributing to market integration and to the Savings and Investment Union objectives. More on #finadium: https://lnkd.in/e6fyaFBT

The US elections promise an end to the regulatory agenda of Gary Gensler at the U.S. Securities and Exchange Commission. For securities finance, taking key regulations off the board will reduce costs and deliver more liquidity to the market; the Gensler agenda won’t be missed. Look out for a version of US Treasury repo clearing to stick around though, either from a regulatory mandate or because it makes the best sense for the industry. More on #finadium: https://lnkd.in/eewS2tty