Finadium

The global collateral marketplace has grown to €25.57 trillion, up 6.5% since the December 2022 figure of €24 trillion, according to Finadium analysis. The increase shows that market participants will continue to drive efficient, cross-product and interconnected collateral technology to protect and expand their balance sheet capabilities. Distributed ledger technology (DLT) is an ideal mechanism to solve this problem set. HQLAᵡ More on #finadium: https://lnkd.in/eWqBAAKs

Since T+1 went live, there’s been enormous interest in analysis gained by tapping into newly available datasets, which stem from automation that comes part and parcel with accelerated settlement. We hear from EquiLend’s global head of Post Trade Solutions, Gabi Mantle, about what the recalls stats imply for behavioral change across the securities lending market. Anna Reitman More on #finadium: https://lnkd.in/e9AH_Bd2

Technological advances in middle and back offices means that crises aren’t what they used to be. We hear from Tim Smith, managing director for Data Insights at Hazeltree about what’s happening in alternative asset management as markets continue to digest recent volatility. Anna Reitman More on #finadium: https://lnkd.in/eaJ4E25y

As settlement cycles in North American securities have moved to T+1, the notion of an idealized T+0 settlement state will come into greater focus over the coming years. This ‘ideal’ however might be a more than one-size-fits-all solution, and there are arguments for a segmented settlement approach based on product type and investor category. And is there any way to implement Gross T+1 settlement at all besides distributed ledger technology (DLT)? More on #finadium: https://lnkd.in/ex5sN8CK

While there’s yet some distance for the regulatory treatment of climate investment to catch up with the mechanisms developing for securities lending, repo and collateral, there’s also increasing signals on what the market for environmental, social and governance (ESG) investing might imply for securities financing. We review some of the latest research and innovations for equities and fixed income and speak with experts on the big picture concerns and granular initiatives in the backdrop of transition financing. Anna Reitman More on #finadium: https://lnkd.in/g_T_C6Fq

A recent report from investment bank UBS detailed how distributed ledger technology (DLT) can provide a “true Payments versus Payments (PVP) solution” for banks to reduce costs and central banks to have more control and prevent the next liquidity-related crisis. We hear from Alex Knight, head of Global Sales and EMEA at Baton Systems, about industry readiness for this transition. Anna Reitman More on #finadium: https://lnkd.in/ed_53JPP

Securities finance leaders and collateral professionals see a diminishing number of younger people entering their specialized markets. The reasons are well known: the financial services career track can be draining; younger people may not be interested in banks or investments compared to other industries; and more technology means fewer needs for entry-level staff. Who will take over when the current generation of leadership retires? More on #finadium: https://lnkd.in/e6jvwVsU

Total Return Swaps (TRS) on US equity underlying positions again foreshadowed the market volatility that occurred last week. We see the pattern repeatedly and the data shows how well TRS traders can predict, time or move the market. More on #finadium: https://lnkd.in/ercN5aNj

Securities financing results in 2024 so far are mixed, punctuated by a significant decline in securities lending revenues with the overall mood wallowing in underperformance. But context and data analytics tells a different story going into the next half of the year. Anna Reitman More on #finadium:

Our quarterly presentation on research, news and events. #Finadium Securities Finance, Collateral and Derivatives subscription clients can log in and download the presentation here: https://lnkd.in/eu6VKqEB.