John Savage’s Post

Société Générale goes live on CLS’s cross currency swaps service. The firms say the CCS system can be used seamlessly in conjunction with the post-trade platform MarkitWire https://lnkd.in/ewV7BQhc #fundadmin #Custody

Société Générale goes live on CLS’s cross currency swaps service. The firms say the CCS system can be used seamlessly in conjunction with the post-trade platform MarkitWire https://lnkd.in/et3BuDAq #fundadmin #Custody

Société Générale goes live on CLS’s cross currency swaps service. The firms say the CCS system can be used seamlessly in conjunction with the post-trade platform MarkitWire https://lnkd.in/e4eteUYU #fundadmin #Custody

Societe Generale has become the latest firm to go live on CLS’ cross currency swaps (CCS) service. The firm aims to leverage CCS to optimise liquidity and mitigate settlement risk, says Pierre-Jean Benazech, Société Générale’s global head of cross CCY swaps trading in a statement. The bank sees the service’s payment-versus-payment (PvP) settlement system and netting capabilities as a “positive step forward” for its foreign exchange (FX) operations.

Societe Generale has gone live on our cross currency swap service. Pierre-Jean Benazech, Global Head Cross CCY Swaps trading at Société Générale commented, "We look forward to leveraging CLS’s CCS service to optimize liquidity and mitigate settlement risk." Read our press release here >> https://lnkd.in/eFaNWYYv #CLSGroup #FXSettlement #CLSSettlement #RiskMitigation #PvP

Financial institutions today encounter significant challenges in efficiently allocating internal costs within the intricate landscape of capital markets. The diversity of products, complexity of transactions, and ever-changing market conditions further exacerbate this difficulty. From Brokerage, Clearing, and Exchange (BC&E) fees to charges for Agent Banks and Custody Services, understanding and managing these costs is vital for maximising income and achieving transparency. Download this whitepaper to explore insights and strategies, from a recent executive roundtable in New York - for enhancing cost transparency in capital markets. https://lnkd.in/g5aEDtjT #tradingfees #brokeragefees #bce #costofincome #capitalmarkets #TLMfeesandexpense

Cleared derivatives are financial contracts that are traded on a regulated exchange and centrally cleared by a clearinghouse. This means that the clearinghouse acts as an intermediary between the two parties to the contract, guaranteeing the performance of both sides. This helps to mitigate counterparty credit risk, which is the risk that one party to a derivative contract will default on their obligations. Suppose you enter into a cleared interest rate swap with a counterparty. In this contract, you agree to exchange interest payments with the counterparty based on two different interest rate benchmarks. If the counterparty defaults on their obligations, the clearinghouse will step in and settle the contract with you. However, you may still be exposed to counterparty credit risk if the clearinghouse itself becomes insolvent. #clearedderivatives #counterpartycreditrisk #financialriskmanagement

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐍𝐞𝐭𝐭𝐢𝐧𝐠? 𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐢𝐭 𝐑𝐞𝐝𝐮𝐜𝐞 𝐑𝐢𝐬𝐤𝐬 𝐚𝐧𝐝 𝐁𝐨𝐨𝐬𝐭𝐬 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲? Netting occurs when trading partners agree to offset their positions or obligations, reducing a large number of individual positions to a smaller number (or a single position). This netted position is then used to settle outstanding debts, either through cash or securities transfer. 𝐊𝐞𝐲 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐍𝐞𝐭𝐭𝐢𝐧𝐠: 1️⃣ 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐂𝐨𝐬𝐭 𝐑𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧: Minimizes the number of transactions and related communication expenses.   2️⃣ 𝐂𝐫𝐞𝐝𝐢𝐭 𝐚𝐧𝐝 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐑𝐢𝐬𝐤 𝐑𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧: Lowers the exposure to credit and liquidity risks by netting settlement obligations.   3️⃣ 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲: Central Counterparties (CCPs) and Central Securities Depositories (CSDs) improve securities and funds transfer efficiency and boost liquidity within the system.   4️⃣ 𝐂𝐨𝐥𝐥𝐚𝐭𝐞𝐫𝐚𝐥 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: Reduces the collateralization requirements for members, easing liquidity demands.   𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐍𝐞𝐭𝐭𝐢𝐧𝐠:   ➡ 𝐂𝐥𝐨𝐬𝐞-𝐎𝐮𝐭 𝐍𝐞𝐭𝐭𝐢𝐧𝐠: Terminates existing contracts and nets obligations post-default.   ➡ 𝐒𝐞𝐭𝐭𝐥𝐞𝐦𝐞𝐧𝐭 𝐍𝐞𝐭𝐭𝐢𝐧𝐠: Aggregates amounts due into a single payment.   ➡ 𝐍𝐞𝐭𝐭𝐢𝐧𝐠 𝐛𝐲 𝐍𝐨𝐯𝐚𝐭𝐢𝐨𝐧: Cancels offsetting obligations and creates a new net obligation.   ➡ 𝐌𝐮𝐥𝐭𝐢𝐥𝐚𝐭𝐞𝐫𝐚𝐥 𝐍𝐞𝐭𝐭𝐢𝐧𝐠: Involves multiple parties, often through a clearinghouse.   𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐍𝐞𝐭𝐭𝐢𝐧𝐠:   In a swap agreement: ➡ Investor A is due $100,000 from Investor B.   ➡ Investor B owes $25,000 to Investor A. ➡ Netting results in Investor A receiving $75,000 from Investor B.    #Finance #RiskManagement #Netting #FinancialMarkets #Efficiency #Liquidity #CreditRisk #FinancialStability #Clearinghouse #Securities

⚠️ Forex Client Report:  #OEXN Fails to Honor Promises？  An agent reported OEXN blocked platform access after a client’s losses, despite initial assurances from the account manager that negative balances wouldn’t need covering. The agent negotiated a $2,000 withdrawal, but now $8,000 remains stuck, with no response from OEXN or the manager.  Details: https://lnkd.in/ghEn8CfM Complaint has been escalated to OEXN, but no response has been received yet. FxGecko data shows OEXN’s low rating. Be cautious of related risks.  Before trading, use the FxGecko app to check brokers. File a complaint if you encounter issues. #fx #forex #trading #investing #broker #financial #markets #forextrading #Investment

Bond issuance volumes have been relatively muted in 1Q24 so far, though deal counts have started to pick up: https://lnkd.in/es4FcfsE Global high-yield asset class volumes have been constrained, with many issuers waiting for interest rates to fall and thus considering cheaper coupon issuance in the coming quarters, while there has also been increased competition from other funding sources such as leveraged loans and private credit. Global bond issuance in 1Q24, based on YTD data to 27 March, suggests volumes have still staged an encouraging performance YoY compared with 1Q23. Check out our Bond Highlights 1Q24 for more insights: https://lnkd.in/es4FcfsE