Louis Namwanja Kizito’s Post

The global financial architecture is moving towards more innovation by accepting the use of a monetary instrument such as SDRs towards investments financing and be part of MDBs-DFIs balance sheet optimization. Now countries and central bankers are called to join this effort of rechannelling this precious instrument!

SFC and HKMA welcome PBoC's new measure on Northbound Swap Connect margin collateral arrangement The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) welcome the announcement of the People's Bank of China (PBoC) (9 July) to support offshore investors to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under Northbound Bond Connect as margin collateral for Northbound Swap Connect transactions. This measure will provide Northbound Swap Connect investors with the additional choice of non-cash collateral, reducing their liquidity cost and improving capital efficiency. It will also help vitalise offshore investors' onshore bond holdings and further enhance the attractiveness of onshore bonds. The measure will also promote synergies between Bond Connect and Swap Connect, thereby further invigorating market participation in the Connect Schemes. #PBOC #SFC #HKMA #onshorebonds #SwapConnect

The Ethiopian Securities Exchange (ESX) was officially launched on 10 January 2025. “We see the new securities exchange as a multi-faceted financial infrastructure, providing multiple markets and variety of products, catering for different types of issuers and investors,” commented ESX CEO Tilahun Esmael Kassahun. Read more: https://lnkd.in/dRygCg_w #ethiopia

Euronext MTS to facilitate European Central Bank’s euro-denominated bonds electronic trading platforms. The contract covers euro-denominated European government bonds and bills, corporate bonds, senior unsecured bank bonds, covered bonds, and supranational, agency and sovereign bonds. #markets #trading #euronext #tradingvenues #technology #fixedincome #bonds #bondstrading #mts #europeancentralbank

Finally our working paper is out! Among the other things, we describe the effects of collateral quality, excess liquidity, collateral scarcity and regulatory reforms on the euro area government bond repo market. We also analyse year-end effects on market liquidity caused by banks’ window dressing. We show that market liquidity in the Italian GC repo market deteriorates in proximity of the last trading day of the year. The median trading activity declines by more than 25% in the last 10 days, while the bid-ask spread deteriorates in correspondence of the reporting dates. Repo rates experience substantial spikes or reverse spikes, depending on the level of excess liquidity in the system and on the perceived quality of the Italian government bonds.   📊 Check out the 48th issue in #Bankitalia’s series "Markets, Infrastructures, Payment Systems". 👉 bit.ly/3S7d6MR

PBOC Works to Ease Funding Pressure Through Liquidity Injections The PBOC conducted ¥800bn in outright reverse repo transactions and bought a net ¥200bn of sovereign bonds in November. An RRR cut is likely still needed. People's Bank of China https://lnkd.in/dUmXn2vV

#EMIR3 advances the European Market Infrastructure Regulation by enhancing the stability and resilience of the EU's #OTC derivatives market, particularly through reduced reliance on third-country central counterparties (#CCPs). Key Points: 💡 Financial Stability: EMIR 3 encourages the use of EU-based CCPs to mitigate systemic risks. 💡 Proportional Fees: The European Banking Authority (EBA) will advise on fair and transparent fee structures for model validation. The European Commission is focused on the swift implementation of EMIR 3, with European Banking Authority (EBA) recommendations expected by Q2 2025. Discover the details: https://lnkd.in/dfJpiyjQ

In a recent Travers Smith webinar, our derivatives experts discussed the incoming changes for EMIR 3.0, the primary derivatives regulation in the EU. Jonathan Gilmour (Partner, Head of Derivatives & Structured Products), Joseph Wren (Partner), Sana Dossa (Senior Associate) and Elinor Samuel (Associate), guide through the key aspects of EMIR 3.0 for buy-side entities, including: - When will EMIR 3.0 come into force? - How will the clearing threshold calculations change? - What are the new reporting requirements? - How are the rules around intra-group transactions changing? - What is the active account requirement and who will it apply to? - What steps should market participants be thinking about to prepare for the new obligations under EMIR 3.0? Watch the full webinar now https://lnkd.in/eeSxK7wS

📉 Current Affairs & FX Markets: Navigating Uncertainty with iBanFirst 📉 The UK FX markets are facing increased volatility due to recent geopolitical tensions, economic shifts, and fluctuating interest rate expectations. The pound is reacting sharply to these developments, making it crucial for businesses with international exposure to manage currency risks effectively. iBanFirst’s product line is designed to help you navigate this uncertainty with ease. From real-time FX tracking to advanced hedging solutions, we provide the tools you need to protect your bottom line and optimize cross-border transactions. Stay informed, stay agile, and let iBanFirst support your global financial strategy. #Forex #FXMarkets #RiskManagement #CurrencyTrading #iBanFirst

The upcoming implementation of #Basel 3.1 by regulators around the world could affect banks' use of #securitization for both capital relief and funding. Internal ratings-based banks in the EU will likely see an increase in credit risk-weighted assets for most loan types that are historically relevant for securitization. Keep reading here: https://okt.to/OHowUt