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U.S. Office Of Financial Research: How Would Introducing A CBDC Affect The Stability Of The Banking System?

Date 12/07/2022

Today, the U.S. Office of Financial Research published a working paper, "Central Bank Digital Currency: Stability and Information." The working paper looks at how introducing a central bank digital currency (CBDC) would affect the banking system's stability.

BIS - Counting The Cost Of Payout: Constraints For Deposit Insurers In Funding Bank Failure Management

Date 12/07/2022

In the liquidation of a failed bank, the deposit insurer often pays out insured depositors. However, orderly bank failure management may benefit from the use of deposit insurance funds to help finance measures such as transfers of deposits and any viable business to another bank, as an alternative to payout. To protect the deposit insurance fund from excessive depletion, such financial support is usually subject to quantitative constraints, typically least cost requirements or caps on the amount that the deposit insurer can provide in a single case. In some frameworks, those constraints can be overridden in systemic cases. This paper analyses such quantitative constraints in a sample of 13 jurisdictions, and finds significant variations in their design, stringency and the availability of systemic exceptions. A key difference relates to jurisdictions' methodologies for calculating the cost of payout, which may predispose the framework towards certain outcomes in a choice between payout and alternative measures. On the basis of these observations, the paper offers conclusions that may help policymakers benchmark their approach to the use of deposit insurance funds in bank failure management.

US Treasury Calls For Large Position Reports

Date 12/07/2022

The U.S. Department of the Treasury is calling for Large Position Reports from those entities whose positions in the 1-1/2% Treasury Note of February 2024 equaled or exceeded $5.2 billion as of Thursday, March 24, 2022, or Friday, April 1, 2022.

Matba Rofex Group Acquires Lumina Americas, Expanding Its Technology Offerings In Latin America - Through The Acquisition Of Lumina Americas, MtR Accelerates Its Strategy To Provide Infrastructure And Solutions To The Capital Markets In The Region

Date 12/07/2022

The pandemic has led to a surge in the region's capital markets. Besides being one of the leading futures exchanges in the region, Matba Rofex also has a growing technology vertical that serves the local capital markets and mutual fund industries through its subsidiary, Primary.

ESMA Explains Classification Of Third-Country Counterparties In Weekly Position Reports

Date 12/07/2022

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today released an Opinion on the classification of third-country counterparties. This clarifies how third-country financial entities should be classified in the weekly positions reports on commodity derivatives and emission allowances derivatives under MiFID II.

Corporate And Municipal CUSIP Request Volumes Rise In June - Short-Term CDs Extend Six-Month Growth Streak

Date 12/07/2022

CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for June 2022. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, found a monthly increase in request volume for new corporate and municipal identifiers.

ESMA Identifies Data Reporting Services Providers To Be Supervised Directly

Date 12/07/2022

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, following the adoption of the European Commission Delegated Act defining the derogation criteria to the principle that data reporting service providers (DRSPs) are subject to ESMA’s supervision, has identified those DRSPs it directly supervises, as well as those derogated entities which remain under the supervision of National Competent Authorities (NCAs) due to their limited relevance for the European Union (EU) market.

BIS Innovation Hub And Bank Indonesia Announce Finalists Of G20 TechSprint CBDC Challenge

Date 12/07/2022

• Twenty-one teams have been shortlisted, out of almost 100 teams worldwide.
• Competition attracted proposals from a diverse range of competing organisations and teams.
• Winners to be announced in October ahead of G20 Summit.

LCH EquityClear SA Goes Live With New Value At Risk (VaR) Margin Model For Cash Equities

Date 12/07/2022

• VaR as the new risk methodology will be applied across 12 regulated markets and MTFs
• VaR captures all risk factors and respective correlations through a standard approach requirement and has an enhanced capacity to adapt to market volatility
• Reaffirms EquityClear SA’s commitment to improving efficiency for its clearing members

READOUT: US Secretary Of The Treasury Janet L. Yellen’s Meeting With Japanese Business Leaders On Bolstering Supply Chain Resiliency And Expanding Friend-Shoring

Date 12/07/2022

Today, Secretary of the Treasury Janet L. Yellen and U.S. Ambassador to Japan Rahm Emanuel participated in a roundtable discussion at the U.S. Embassy in Tokyo with leaders of Japanese businesses to discuss how bolstering supply chain resiliency and expanding friend-shoring with trusted economic partners can help ease inflationary pressures over time and address the bottlenecks that are raising prices for consumers. The participants discussed the state of the American and Japanese economies, as well as efforts to mitigate supply chain challenges rising from the COVID-19 pandemic and Putin’s unprovoked and unjustified war in Ukraine, particularly its effects on global energy and food prices. Secretary Yellen provided an update on the United States’ rapid economic recovery thanks to President Biden’s American Rescue Plan and strategies to combat global inflation, including a price cap on the cost of Russian oil exports to lower prices for consumers in the United States, Japan, and around the world while limiting revenue for Putin’s war machine.