This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms
Basel III, T+1 and EquiLend scandal all incentivise clearing, but also disintermediation
New swap platform hopes to ease funding pains, but can it promote more use of PvP?
Trading tokenised versions of currencies on blockchain could slash settlement risk but sceptics raise concerns over liquidity and pricing
Non-US asset managers may miss crucial window to settle trades with CLS after switch from T+2 to T+1
Risk Live: Many non-US firms yet to realise FX implications of the country’s shift to shorter settlement times
Faster settlement will create cash shortfalls for non-US asset managers
Risk-weighted assets for Japanese lender’s unsettled transactions cross ¥300 billion mark in the first three months of 2023
Cash-like tokenised instruments find takers; initiatives based on less liquid assets struggle to take off
As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market
Demands for interdealers and prime brokers to be brought into crypto market in wake of FTX debacle
C$3.5 billion RWA figure marks one of the heftiest capitalisation of held-up trades ever by a bank
Automated market-makers are already used for EUR/USD trades – now can they tackle settlement risk?
New deal would improve management of options expiries, but will stop short of cross-margining
Proposed infrastructure add-on could make blockchain settlement and payment systems non-viable
This paper highlights an externality in the clearing of customer securities trades, and it examines the potential benefits and costs of alternative clearing approaches.
Impact of Ukraine invasion hit bank balance sheets hard; its effects look set to continue
Held-up and failed counterparty transactions add almost $1bn to RWAs
Bills in US Congress focus on run risk, but more detail needed on operational challenges
Margin supplement bought precious time to formulate wind-down strategy
SNB’s Andrea Maechler urges more liquidity providers and trading venues to address hold times
Idea floated as battery of initiatives vie to address slowing use of PvP services
This paper proposes an intraday liquidity risk indicator (LRI) for each participant in a real-time gross settlement system (RTGS).
12 banks announce support for project to extend PvP protection to certain CLS-ineligible currencies