The news we’re reading this week includes –
- ISDA urges regulators to ease EU-CCP relocation – Global Custodian, 21st August
The International Swaps and Derivatives Association (ISDA) has suggested that policy makers should implement a transitional period if clearing is to be relocated from the City of London after Brexit.
In a recent whitepaper, ISDA voiced concerns about the complexity and increased costs to the market that participants would have to pay following central counterparty (CCP) relocation.
If euro clearing is forced to move to the EU from London, costs to trade euro-denominated interest rate swaps are expected to increase greatly for asset managers, with the vast majority of business coming from outside the EU.
- NSD begins servicing repos with Bank of Russia bonds – Securities Lending Times, 23rd August
Russia’s central securities depository, the National Settlement Depository (NSD) has begun using Bank of Russia repo trades as a component of the basket of Bank of Russia bonds (OBR).
The bond operations are a flexible instrument for regulating bank liquidity, and may be used as collateral for transactions or as a tool for attracting refinancing from the Bank of Russia. OBR operations will only be available to Russian credit organisations initially, and in this instance, the Bank of Russia placed bonds amounting to RUB 150 billion, with 3 months of maturity.
- Banks could be forced to unwind non-compliant derivatives contracts – The Trade, 21st August
- The European Commission has launched a consultation on further reducing barriers to post-trade services across financial markets – ISLA, 24th August