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☆ Central banks of India, England resolve trade settlement stand-off
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +1 min

[1/2] FILE PHOTO: A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas//o/File Photo Acquire Licensing RightsMUMBAI, Dec 1 (Reuters) - The central banks of India and England on Friday signed an agreement on information exchange for settlement of bond trades, the Reserve Bank of India (RBI) said. In India, bonds are settled through the Clearing Corporation of India (CCIL). The two central banks have also established a framework for the BoE to rely on the Indian central bank's regulatory and supervisory activities, while safeguarding the United Kingdom's financial stability, the RBI said. This meant that European banks had to settle their India-based trades through banks based in other jurisdictions.

Persons: Francis Mascarenhas, BoE, CCIL, Siddhi Nayak, Jayshree, Nivedita Bhattacharjee, Sohini Organizations: Bank of India, REUTERS, Rights, Reserve Bank of India, Clearing Corporation of India, Bank of England, United, European Securities and Markets Authority, Siddhi, Thomson Locations: Mumbai, India, England

Industry practice suggests that a large share of hedge funds trading in repo markets put up zero collateral, meaning they are fuelling activity using enormous amounts of cheap debt. A looming rule by the U.S. Securities and Exchange Commission would expand the use of central clearing in the cash Treasury and repo market. SEC chair Gary Gensler recently promoted the benefits of central clearing and pointed to data showing high levels of repo trades transacted at zero haircuts. James Tabacchi, CEO of South Street Securities, called zero haircuts a "race to the bottom" and not healthy for markets. However, some market participants have voiced concerns that some of the proposed reforms could be a hurdle for some investors, potentially undermining the goal to improve liquidity and resilience in the Treasury market.

Persons: Rick Wilking, Christopher Clarke, Gary Gensler, James Tabacchi, Richard Chambers, Goldman Sachs, Davide Barbuscia, Megan Davies, Paritosh Bansal, Sonali Paul Organizations: REUTERS, U.S, Industry, repo, North America Sovereign Financing, Morgan Securities, Treasury, Federal Reserve Bank of New, U.S . Securities, Exchange, Corporation, SEC, . Federal Reserve, South Street Securities, Goldman, Thomson Locations: Westminster , Colorado, Treasuries, Federal Reserve Bank of New York, Carolina

☆ Mastercard will soon be widely accepted in China
▼ + stars: | 2023-11-21 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

The US credit card giant announced Monday that it had received clearance from China’s central bank and the financial regulator to launch a bank card business in China through its joint venture with partner NetsUnion Clearing Corporation (NUCC). Mastercard (MA) will be able to start issuing Chinese yuan-denominated bank cards under its own brand, according to a Sunday statement from the People’s Bank of China (PBOC). Mastercard CEO Michael Miebach took part in a CEO summit on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum that Xi and other leaders from across the Pacific were in town to attend. Like other foreign payments providers, Mastercard has campaigned for years to expand its business in China. Previously, it was only authorized to issue co-branded cards, such as those with China UnionPay, the state-owned bank card network.

Persons: Xi Jinping, Joe Biden, Xi, Michael Miebach, Elon Musk, Tim Cook, Miebach, China UnionPay, Amex Organizations: Hong Kong CNN, Mastercard, NetsUnion Clearing, People’s Bank of China, New, San Francisco Bay Area, Economic Cooperation, Apple, American Express, Visa Locations: China, Hong Kong, Beijing, Washington, New York, San Francisco Bay, United States, Asia

[1/2] The logo of Barclays bank is seen on glass lamps outside of a branch of the bank in the City of London financial district in London September 4, 2017. The SEC central clearing rule, first proposed in September last year, would apply to the cash Treasury and repurchase agreements (repo) markets, where banks and other players such as hedge funds borrow short-term loans backed by Treasuries. "This creates a potential single-point of failure risk as recent events illustrate," he said, referring to the ICBC hack. Abate also flagged cybersecurity risks for direct members of the FICC, as well as clients they sponsor to access the clearing platform, saying mandatory central clearing could make FICC "a fortress with many doors." The SEC is expected to finalize the rule early next year, said Barclays, but it is unclear how much time the industry would have to implement it and whether central clearing will occur simultaneously for Treasuries and repo transactions.

Persons: Toby Melville, Joseph Abate, ICBC, BNY Mellon, Abate, DTCC, Treasuries, Davide Barbuscia, Marguerita Choy Organizations: Barclays, REUTERS, U.S . Securities, Exchange Commission, Commercial Bank of China's, SEC, Treasuries, Corporation, Depository Trust, Clearing Corporation, U.S . Treasury, Reuters, Thomson Locations: City, London, Commercial Bank of China's U.S, U.S

ICBC's U.S. unit told market participants on Friday it was hoping to finish the cyber review over the weekend, but the sources said they expected it would spill into next week. The cyberattack sent ripples through the U.S. Treasuries market, where ICBC acts as a broker for hedge funds and other market participants, helping them trade in the securities. The Chinese parent then injected capital into the U.S. unit, allowing it to settle the trades and pay back BNY Mellon, the sources said. They also told market participants about the capital injection but did not disclose the amount or the reason for it, the sources said. SIFMA, the trade group, organized calls for market participants with updates, the sources said.

Persons: Tingshu Wang, BNY Mellon, ransomware, ICBC, SIFMA, Janet Yellen, Lifeng, Scott Skyrm, Jack McIntyre, Harry Robertson, James Pearson, Naomi Rovinick, Yoruk, Davide Barbuscia, Chris Prentice, Mike Derby, Carolina Mandl, Laura Matthews, Paritosh, Zeba, Megan Davies, Dhara Ranasinghe, Alexander Smith, Richard Chang, Anna Driver Organizations: Asset Management, Fair for Trade, Services, REUTERS, Commercial Bank of China, U.S ., ICBC Financial Services, Securities Industry, Financial Markets Association, ICBC, Treasury, China, U.S, New York Federal Reserve, Securities, Depository Trust, Clearing Corp, Thomson Locations: Beijing, China, ICBC's U.S, U.S, San Francisco, Treasuries, Hong Kong, Shanghai, London, Amsterdam, Carolina, New York

☆ The CEO of UNest, a college savings app, stepped down after she said the company was 'insolvent.' Here's what customers need to know.
▼ + stars: | 2023-11-03 | by ( Ben Bergman | ) www.businessinsider.com time to read: +4 min

UNest is a startup that makes it easier for people to save up for major life expenses like college. Ksenia Yudina, founder & CEO, stepped down last month and warned the company was "insolvent." download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . As Insider previously reported, Ksenia Yudina, founder & CEO, stepped down last month and warned the company was "insolvent." "The board, remaining management, and investors are working closely together to secure additional funding for the company," he said.

Persons: Ksenia Yudina, —, Franklin Templeton, Star Baron Davis, Laura Dern, Michael Doniger, UNest, Ben Bergman, bbergman@insider.com Organizations: Service, Artemis Fund, Anthos, Northwestern Mutual, Star, Vanguard, Blackrock, Apex Clearing Locations: Anthos Capital, Apex

☆ In the Market: Treasury market braces for seismic SEC rule
▼ + stars: | 2023-10-30 | by ( Paritosh Bansal | Thomson Reuters | Paritosh Oversees The Work Of More Than Journalists Across The Globe Who Write About Finance | ) www.reuters.com time to read: +6 min

SIFMA, which has lobbied the SEC, expects the final rule next month, ahead of a Treasury market conference on Nov. 16. The SEC rule would be the most significant regulation so far to come out of that review. There is broad consensus on the need for Treasury market reform, including the benefits of central clearing -- even among the industry sources interviewed for this article. "It is going to improve financing and reduce the risks for turmoil in the U.S. Treasury market," said Yiming Ma, an associate professor at Columbia Business School. The SEC rule would force the banks to move that to central clearing.

Persons: Andrew Kelly, JPMorgan Chase, ”, Rob Toomey, SIFMA's, Gary Gensler, Banks, Ma, SIFMA, Toomey, Paritosh Bansal, Anna Driver Organizations: U.S . Securities, Exchange Commission, Washington , D.C, REUTERS, Treasury, SEC, JPMorgan, Bank of New York Mellon, Federal Reserve, U.S . Treasury, Columbia Business School, Depository Trust, Clearing Corp, Thomson Locations: Washington ,, U.S

When 2023 began, a single bitcoin could be had for less than $17,000 after losing more than 75% of its value. Now, bitcoin is getting another boost on the prospects of creating a much larger pool of investors. IShares Bitcoin Trust appeared to be temporarily removed Tuesday, but was back online as of Wednesday. Still, the most recent surge bitcoin goes beyond single developments or participants, Kaiko research analyst Riyad Carey notes — crediting “more of a broad market rally" around spot bitcoin ETF prospects. Despite the recent excitement around bitcoin, crypto is still a risky bet.

Persons: Bitcoin, hasn't, Edward Moya, IShares Bitcoin, iShares, Moya, Riyad Carey, “, —, “ We’re, it’s, ”, it's, ” Moya, bitcoin Organizations: Federal Reserve, Industry, Columbia, Securities and Exchange Commission, Grayscale's, SEC, Depository Trust, Clearing Corporation, Associated Press Locations: Silicon, bitcoin, cryptocurrencies

☆ Bitcoin is surging again
▼ + stars: | 2023-10-24 | by ( David Goldman | ) edition.cnn.com time to read: +2 min

BlackRock applied in June to register a bitcoin spot ETF, which is pending approval. A BlackRock bitcoin ETF would give the cryptocurrency a new sense of legitimacy. “However, it may appear as part of BlackRock’s preparations to launch the ETF soon.”Other companies have also applied for approval to launch similar bitcoin ETFs, including Greyscale Investments. As investors look to diversify their portfolios in uncertain times, some turn to bitcoin, ironically as a kind of digital safe haven. Sometimes dubbed “digital gold,” bitcoin has become a way for investors to branch out beyond traditional stocks and bonds.

Persons: New York CNN —, bitcoin, ”, Samer Organizations: New, New York CNN, BlackRock, Depository Trust, Clearing Corp, Nasdaq, Reuters, Greyscale Investments, US Securities and Exchange Commission, Greyscale’s, DC, of Appeals, SEC, “ Locations: New York, BlackRock, bitcoin

NICKELS & STEAMROLLEREstimating the size of hedge funds' basis trade bets is difficult because transparency and visibility around hedge funds is so low at the best of times, especially with regard to their more complex activities and strategies. Many analysts look at leveraged funds' position in Treasuries futures, and the Aug. 30 Fed paper also noted speculators' repo borrowings. This is a fairly reliable sign of basis trade activity, the Aug. 30 Fed paper says. Overnight repo rates have steadily tracked the fed funds policy rate since March 2022. Basis trade liquidation, as funds got squeezed out of their positions through margin and collateral calls as volatility rocketed, likely contributed to that dislocation.

Persons: Steven Zeng, Christoph Schon, Jamie McGeever, Paul Simao Organizations: Fed, Bank for International, Deutsche Bank, STEAMROLLER, Futures, Reuters, Thomson Locations: ORLANDO, Florida, U.S

☆ Crude oil will be resilient in recession, but refineries are a wildcard, says MBF's Mark Fisher
▼ + stars: | 2023-09-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCrude oil will be resilient in recession, but refineries are a wildcard, says MBF's Mark FisherMark Fisher, MBF Clearing Corporation founder and CEO, joins 'Halftime Report' to discuss rising oil and gas prices, the U.S. effort to strike a deal with oil suppliers and the market pricing in recession fears.

Persons: MBF's Mark Fisher Mark Fisher Organizations: MBF Clearing Corporation Locations: U.S

☆ Use this strategy to generate portfolio income from your stocks as markets rise
▼ + stars: | 2023-07-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

An options strategy that's done just right will let you capture appreciation as stocks rise and generate some portfolio income. Enter covered calls. With covered calls, rising markets introduce an element of risk: Sell a covered call against a stock that takes off on a hot streak, and you miss an opportunity. "The Nasdaq 100 has had some incredible runs, and investors missed out on those if they were in the covered calls strategy," Armour said. "In a year like 2022, I'm not sure the Nasdaq 100 covered calls strategy would feel defensive."

Persons: Randy Frederick, Frederick, Bryan Armour, It's, Armour, I'm Organizations: Schwab Center, Financial Research, Corporation, Tech, Nvidia, Meta, Morningstar, JPMorgan Equity, Global, Nasdaq Locations: North America

☆ CDS panel says Credit Suisse bankruptcy event has not occurred
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +2 min

May 22 (Reuters) - A derivatives committee ruled on Monday that a bankruptcy credit event had not occurred in relation to Credit Suisse, quashing investors' efforts to trigger a payout on credit insurance linked to the Swiss lender. "The DC determined that a Bankruptcy Credit Event had not occurred," the EMEA Credit Derivatives Determination Committee (CDDC) said in a statement on its website. The DC reviewed the public information submitted with the question and decided that such information did not confirm that a Credit Event had occurred, the committee said. Investors tried last week to secure a payout on the credit default swaps (CDS) linked to Credit Suisse debt by seeking a ruling on whether a so-called government intervention credit event had occurred. The amount of gross notional outstanding CDS linked to Credit Suisse bonds stood at more than $19 billion in March, according to Depository Trust & Clearing Corporation data.

NEW YORK/WASHINGTON, May 15 (Reuters) - As talks over raising the U.S. government's $31.4 trillion debt ceiling intensify, Wall Street banks and asset managers have begun preparing for fallout from a potential default. Citigroup (C.N) CEO Jane Fraser said this debate on the debt ceiling is "more worrying" than previous ones. U.S. government bonds underpin the global financial system so it is difficult to fully gauge the damage a default would create, but executives expect massive volatility across equity, debt and other markets. Banks, brokers and trading platforms are prepping for disruption to the Treasury market, as well as broader volatility. Bond trading platform Tradeweb said it was in discussions with clients, industry groups, and other market participants about contingency plans.

NEW YORK, April 28 (Reuters) - Bearish options traders are ramping up bets on further declines in the beaten-down shares of First Republic Bank (FRC.N), though strategists say they could run into trouble cashing in their wagers if the bank goes into receivership. Profitable put options are typically automatically exercised by selling underlying shares - either already owned by the investors or newly purchased - at a profit. But brokers might restrict share sales when a stock is halted, keeping investors from reaping gains. Some traders found this out the hard way when they ran into trouble cashing in bearish options bets on failed lenders SVB Financial Group and Signature Bank. The Options Clearing Corp and brokerages Charles Schwab, Robinhood, Interactive Brokers and Fidelity did not immediately respond to a request for comment.

☆ Natural gas cuts will face the same dilemma as crude oil, says MBF's Mark Fisher
▼ + stars: | 2023-04-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNatural gas cuts will face the same dilemma as crude oil, says MBF's Mark FisherMark Fisher, MBF Clearing Corp founder and CEO, joins 'Halftime' to discuss rising oil prices, the OPEC+ decision to cut production, and the preparing for the clean energy transition.

☆ March's bank failures show options can be tricky even when retail traders pick big winners
▼ + stars: | 2023-04-03 | by ( Jesse Pound | ) www.cnbc.com time to read: +6 min

This halt, and how regulators and brokerage firms handled the outstanding options contracts, turned simple trades into a big headache for retail investors. Davies said that usually he would sell his winning options trades before expiration, so he does not have to deal with the settlement process. Robinhood later allowed Davies to create the naked short position and therefore to exercise his option. The naked short positions showed an on-paper loss in his account until the stock began trading over the counter on March 28. Another wrinkle is that some types of accounts, including retirement accounts, are not allowed to hold short positions, which created additional steps for traders and brokers to close out the trade.

☆ Global derivatives industry defends CDS after banking blow-ups
▼ + stars: | 2023-03-30 | by ( Marc Jones | ) www.reuters.com time to read: +3 min

Credit default swaps (CDS) are derivatives that offer insurance against the risk of a bond issuer - such as a bank - not paying their creditors. European Union markets watchdog ESMA said on Thursday that it, together national regulators, had been "looking into the recent market movements, including in the CDS market". Clearing of individual bank or company CDS is also available at LCH’s CDSClear and ICE Clear Credit. Overall, the credit derivatives market is also far smaller than it was before the 2008 crisis. "The credit derivatives market continues to play a critical role, particularly during times of volatility," Malia said.

☆ Explainer: What are credit default swaps and why are they causing trouble for Europe's banks?
▼ + stars: | 2023-03-28 | by ( Amanda Cooper | ) www.reuters.com time to read: +6 min

LONDON, March 28 (Reuters) - Turbulence in Europe's banks following the implosion of 167-year-old Credit Suisse (CSGN.S) and runs on regional banks in the U.S. has focused attention on the role played by credit default swaps in all the turmoil. The moves followed a surge in the cost of insuring Deutsche Bank's debt against default via credit default swaps (CDS) to a more than four-year high last week. Credit default swaps are derivatives that offer insurance against the risk of a bond issuer - such as a company, a bank or a sovereign government - not paying their creditors. The CDS market is worth around $3.8 trillion, according to the International Swaps and Derivatives Association. The CDS market is small relative to equities, foreign exchange or the global bond markets, where there are more than $120 trillion bonds outstanding.

MUMBAI, Dec 1 (Reuters) - A month into India's pilot project for using an official digital rupee for inter-bank and institutional transactions, stakeholders are seeing no benefits, several bankers said. But in the initial trial banks have been using it for settlements with each other - with no particular advantage, according to bankers. Another issue is that, since e-rupee transactions do not wholly replace those using established procedures, they add to banks' accounting work. It would also offer a safer means of digital payment in retail use, the RBI said. UPI, an instant real-time consumer payments system that lets users transfer money between banks without disclosing account details, has been a factor in India's soaring digital payment volume.

☆ Watch CNBC's full interview with Mark Fisher of MBF Clearing Corp.
▼ + stars: | 2022-09-23 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Mark Fisher of MBF Clearing Corp. Legendary investor Mark Fisher of MBF Clearing Corp. joins 'Closing Bell: Overtime' to discuss what he's seeing in the markets, how the Fed and the country need to deal with inflation and where he sees commodities heading. With Virtus Investment Partners' Joe Terranova.

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