Tuesday, November 3, 2009
Co-location and latency...
Placing a server next to an exchange's hub is also the next battleground between exchanges and electronic trading platforms in the increasingly competitive and fragmented markets that now define equity trading.
Fast rise in global trade
At its meeting in April, the G20 group of nations urged multilateral development banks and export credit agencies to increase support for trade finance, since when its cost has come down.
But they remained uncertain over how much of the contraction in trade was caused by expensive financing.
Robert Zoellick, president of the World Bank, estimates that trade finance caused no more than 10-15 per cent of the fall.
But they remained uncertain over how much of the contraction in trade was caused by expensive financing.
Robert Zoellick, president of the World Bank, estimates that trade finance caused no more than 10-15 per cent of the fall.
CDS concentrated among few plays in interest and currency swaps
In practice, many corporate users have never really adopted the instruments on any scale. That is in stark contrast to the world of interest or currency swaps, where such instruments are very widely used.
That pattern has left the CDS market marked by striking levels of circularity, since a limited pool of large financial players dominate much activity. In some respects, this sense of concentration has actually risen - not fallen - in the last year, because hedge funds and other players (including AIG) have been forced out of the sector. The Banque de France, for example, calculates that the 10 largest dealers now account for 90 per cent of trading volume (it was below 75 per cent in 2004). In the US, JPMorgan Chase alone now apparently represents 30 per cent of the US market. This is similar - ironically - to its share a decade ago when it first pioneered the CDS world.
That pattern has left the CDS market marked by striking levels of circularity, since a limited pool of large financial players dominate much activity. In some respects, this sense of concentration has actually risen - not fallen - in the last year, because hedge funds and other players (including AIG) have been forced out of the sector. The Banque de France, for example, calculates that the 10 largest dealers now account for 90 per cent of trading volume (it was below 75 per cent in 2004). In the US, JPMorgan Chase alone now apparently represents 30 per cent of the US market. This is similar - ironically - to its share a decade ago when it first pioneered the CDS world.
Fed looks at traders' books
Wall Street executives said that regulators, led by the Federal Reserve, had been asking major banks in recent weeks to provide a detailed breakdown of their balance sheets, with particular attention to their trading books.
The authorities wanted to know what proportion of a bank's balance sheet was held in more liquid positions and how much was held in derivatives and other trading positions whose profitability might not be known for years, they added.
The nature of the behind-the-scenes request surprised some Wall Street executives until news broke last week that the Fed was planning to ask for new veto powers over traders' pay packages.
The authorities wanted to know what proportion of a bank's balance sheet was held in more liquid positions and how much was held in derivatives and other trading positions whose profitability might not be known for years, they added.
The nature of the behind-the-scenes request surprised some Wall Street executives until news broke last week that the Fed was planning to ask for new veto powers over traders' pay packages.
Barclay's Protimum finance -- not a SIV
Barclays plans to sell $12.3bn of credit assets to a “newly established fund” called Protium Finance – which will be independent but mostly financed by a loan from Barclay
UK quantitative easing 6 months on
...the Bank of England has bought £142bn ($233bn) in gilts – 20 per cent of the market – and £2bn in corporate assets.
Thursday, September 17, 2009
Houses to put in order
No indications yet of Obama administration proposals for reforms at GSE's Fannie Mae and Freddie Mac, to be presented along with the 2011 federal budget.
Before the government takeover of the 2 GSE's in 2008, they had been the silent partner in 50% of home loans, buying loans from banks and lenders and selling them on to investors in packaged securities.
The Congressional Budget Office will now report in these agencies as federal operations. Fannie and Fred have received $100 billion of a $400 billion Treasury lifeline, senior preferred stock purchases with 1 10 % dividend. The Fed has committed to purchasing $1250 billion of their mortgages and $200 billion of their debt
At the end of July, the two companies had $5,500bn of outstanding debt and guarantees on securities, approaching the $7,200bn US public debt. The two also hold a combined $1,500bn of mortgages and mortgage-backed securities on their balance sheets..
Before the government takeover of the 2 GSE's in 2008, they had been the silent partner in 50% of home loans, buying loans from banks and lenders and selling them on to investors in packaged securities.
The Congressional Budget Office will now report in these agencies as federal operations. Fannie and Fred have received $100 billion of a $400 billion Treasury lifeline, senior preferred stock purchases with 1 10 % dividend. The Fed has committed to purchasing $1250 billion of their mortgages and $200 billion of their debt
At the end of July, the two companies had $5,500bn of outstanding debt and guarantees on securities, approaching the $7,200bn US public debt. The two also hold a combined $1,500bn of mortgages and mortgage-backed securities on their balance sheets..
Subscribe to:
Comments (Atom)
