We are repeatedly frustrated by anti-securities finance bias in the mainstream press. Although press panelists at the Finadium 2016 Conference asked for transparency, we see a continued bias against financing in many forms. The latest negative slant comes from ProPublica and the Washington Post reporting on German dividend arbitrage.
In polite and diplomatic language, buy-side respondents to ESMA’s recent discussion paper on SFTR expressed their displeasure with both the amount of time allowed in the response as well as the specifics. There were some common themes across the comment letters including who reports, how much is reported and overlap with other regulation. The sell-side and related industry associations weren’t thrilled either.
NY Fed President Dudley on market and funding liquidity; recognizes potential liquidity decline (Premium)
This is really interesting: New York Fed President William Dudley gave a speech over the weekend on market and funding liquidity at an Atlanta Fed conference. After defending market liquidity as robust, he then went on to detail how maybe, just maybe, that isn’t the case. He also had some comments on the Fed funding bank-affiliated brokers in an emergency. We excerpt his best lines for our readers (emphasis added):
ISLA 25th Securities Lending and Collateral Management Conference
Vienna June 21-23, 2016
33rd Annual RMA Conference on Securities Lending
Boca Raton October 10-13, 2016