Finadium

Global Digital Finance (GDF) and the International Swaps and Derivatives Association (ISDA) teamed up for a report on US tokenized money market funds (TMMFs) for collateral mobility.

We’ve upgraded our member login. Your Finadium username has not changed. In most cases, your existing password will continue to work on this updated site. If your password does not work, please click the “Reset password” link below to set a new password on the upgraded system.

The European Securities and Markets Authority (ESMA) published its final report on the simplification of transaction reporting. Michele Hillery, managing director and head of Repository & Derivatives Services, said in emailed commentary: “ESMA’s decision to advance a ‘report once’ framework in the longer-term marks an important step toward a more standardized, efficient, and aligned reporting framework.

The Alternative Investment Management Association (AIMA) released a survey showing a strong investor preference for long-short equity, which was the top choice for more than half (54%) of the respondents, up from 43% last time and 35% in 2022. This was followed by multi-strategy, up from 12% to 14%, still a relatively modest amount; and global macro, chosen by 10%, was third.

South Korean retail investors borrowed a record amount from securities firms in the second quarter of this year as the local stock market extended its strong rally, reports Yonhap. The combined average daily balance of margin loans and stock-backed loans reached a record 61.98 trillion won ($40.5 billion) in the April-June period, up from 57.42 trillion won in the January-March period, according to the Korea Financial Investment Association (KOFIA).

Market participants should review and provide input to ESMA’s consultation on the revised Guidelines on allocations and confirmations. This is a short but important window. “We need practical feedback from the firms and infrastructures that will have to implement the requirements in daily operations,” said Verena Ross, chair of the European Securities and Markets Authority, in a recent speech.

A new paper by the Bank for International Settlements (BIS) suggests that crypto-native firms are now providing financial intermediation activities traditionally performed by banks and prime brokers, which can raise questions on the trajectory of regulation. At the same time, this can inform traditional regulated financial institutions in providing similar technology-driven services as the move to tokenized assets and 24/7 trading gathers pace. This content requires a Finadium subscription.

The artificial intelligence (AI) investment cycle continues at full speed, with two key trends being the most relevent in assessing its current stage, wrote analysts from Edmond de Rothschild in a recent report titled Semiconductors and Artificial Intelligence: Where Are We in the Investment Cycle?

The International Securities Lending Association (ISLA) published a new paper on the application of close-out netting under the global master securities lending agreement (GMSLA) 2010. As the legal bedrock of the securities lending market, the GMSLA’s resilience is most critical during times of market stress or counterparty default.

The European Securities and Markets Authority (ESMA) published its final report on the simplification of transaction reporting. Among the major reporting burdens identified was dual-sided reporting, notably under the European Market Infrastructure Regulation (EMIR) and Securities Financing Transactions Regulation (SFTR), particularly due to reconciliation, pairing, matching and correction processes.