"Hacktivists affiliated with Anonymous successfully took down the Greek Central Bank's website. They said it was the first in a series of global central banks they plan to target over the course of the month."
"European buy-siders are being asked to sign up to a new style of credit support annex (CSA) that would cut bank capital costs by settling and re-striking trades every few months. Banks would be able to hold less capital using the CSA, because regular settlement would cut down the residual time to maturity of swaps, a key input in the calculation of the leverage ratio. Some of the cost savings could be passed on to clients."
"Credit-default swaps traders are clearing a growing portion of contracts through central clearinghouses as the total market shrinks, according to the Bank for International Settlements. The share of outstanding contracts traded through clearinghouses rose to 34 percent at the end of December from 31 percent at the end of June and less than 10 percent in 2010, BIS said in a report published on Wednesday."
"As part of a consultation focusing on ways to constrain bank models for credit risk, the Basel Committee revealed that it had decided to drop the IMA-CVA approach. The decision has upset large derivatives dealers, for which CVA – the cost of counterparty credit risk reflected in the market value of derivatives trades – is most significant. They argue the remaining approaches will penalise them with higher capital charges, while pulling regulatory CVA further away from the numbers they use for hedging and accounting purposes. And, by taking away their ability to use advanced models for regulatory CVA, it could also provide a boost to smaller rivals."
"There is a pressing need for active, old and new market participants of all types to be willing to step in and provide the traditional risk-transfer function of markets, with a steady eye on their business models. Also, a new generation of LDI products, including some form of alpha generation, needs to be urgently designed and adopted, given real yields’ flirtation with negative territory."
"Fannie Mae on Tuesday announced continued enhancements to its loan-level disclosure data for the Connecticut Avenue Securities (CAS) credit-risk transfer program."
"FHA loans have become more expensive as the housing recovery surges forward. A 2016 Mortgage Insurance Study by WalletHub found that private mortgage insurance has resurfaced as a once-again viable option for those that can afford a mortgage but not the 20 percent down payment."
"Australian entrepreneur Craig Wright, the man who came forward this week as bitcoin's founder, is backtracking. He wrote in a blog post that he does not "have the courage" to publish additional proof, as promised, that he is the elusive creator of the Internet currency."
"Former BrokerTec chief says technology can transform the financial markets"
"In the third post in this series, we examined GCF Repo® traders’ end-of-day strategies. In this final post, we further our understanding of dealers’ behavior by looking at their trading pattern within the day. "
"US regulators have largely failed to loosen the grip that the big three credit rating agencies have on the bond rating business, even after reforms put in place in the wake of the last financial crisis."
"IntercontinentalExchange (ICE) has begun making changes to its European clearing house in preparation for incoming open access rules. Jeffrey Sprecher, CEO and chairman of ICE and a frequent critic of open access and MiFID II, said during an earnings call that it is building out its capabilities to go beyond central clearing. “We’ve continued to make sure that the ancillary services that we provide around the trading venues, where we do believe there will be fragmentation, offer a lot of capabilities to our end-users,” Sprecher said."
"Deutsche Boerse’s Eurex Clearing announced it has connected with Bloomberg’s OTC electronic trading platform as a trade source. The move means traders using Bloomberg’s electronic trading or post-trade confirmation systems can now use Eurex Clearing’s OTC CCP to submit their OTC trades for clearing."
"The International Swaps and Derivatives Association, Inc. (ISDA) today announced the launch of a Protocol that will enable market participants to comply with new regulations aimed at ensuring the cross-border enforceability of stays on contractual termination rights."
"Digital Currency Group (DCG), a Bitcoin and blockchain investment and collaboration hub, recently added members to its board and staff alongside the close of a major funding round."
"The Australian Securities and Investments Commission (ASIC) has proposed the launch of a regulatory sandbox to help FinTech start-ups in the region."
"U.S. fixed income market participants should begin using a new benchmark the Federal Reserve introduced earlier this year to replace the federal funds rate when pricing derivatives contracts, two industry groups said Wednesday. The Federal Reserve Bank of New York introduced the overnight bank funding rate earlier this year to provide an alternative to the fed funds rate, which the U.S. central bank targets for monetary policy decisions, because turnover in fed funds has dwindled since the financial crisis."
"Almost $10tn of negative yielding government bonds are costing investors about $24bn annually, according to calculations by Fitch, posing challenges to long-term investors that rely on sovereign debt as a bedrock of their portfolios."
"In the last 24 hours Wright has posted on his blog that extraordinary claims require extraordinary proofs and that he will provide such proof over the coming days in the form of “a transfer from an early block”. This could be the much touted miracle of the movement of the Satoshi funds we’ve all been waiting for."
"This 20th edition of the Financial Stability Review (FSR) analyses the new situation created by the digital era of the financial system for financial institutions, markets and regulators: development of information systems, incoming of electronic platforms, sharp increase in algorithm-based transactions, creation of virtual currencies, widespread access for online financial services and online banks."