#CFTC – Page 6 – Federal Financial Analytics

12 11, 2021

GSE-111221

Arezou Rafikian2023-06-01T13:50:32-04:00November 12th, 2021|4- GSE Activity Report|

Taking Their Time On the Treasury Market

As Mark Calabria made clear earlier this year, reform of the Treasury market has direct, major impact on that for agency debt and MBS. Indeed, given ongoing Treasury-obligation issuance uncertainties at a time of brute-force fiscal policy along with continuing debt-ceiling drama, the two high-quality liquid assets are tied at the hip even if bank liquidity rules don’t recognize this. We thus review the new inter-agency Treasury-market report for its agency impact at a time of growing bond-market volatility. As our in-depth analysis of the new report makes clear, we had to look hard for near-term implications and, after doing our best, came away largely empty-handed.

GSE111221.pdf…

10 11, 2021

TMARKET2

Arezou Rafikian2023-06-01T14:24:09-04:00November 10th, 2021|5- Client Report|

Treasury-Market Reform Construct Leaves Much to Decide, Do

In this report, we build on our initial analysis of Monday’s report from the Inter-Agency Working Group on Treasury Market Surveillance (IAWG). Comprising the Treasury, the Fed, the SEC, the CFTC, and the Federal Reserve Bank of New York, the Working Group’s report narrows the scope of reforms to be discussed at next week’s closed FSOC meeting and then taken up by both the Group and FSOC. Hints about what staff may think best may be inferred from the report by virtue of where attention is focused and hints about near-term decisions are offered. From this, we infer that central clearing is a top-priority consideration and that all of the agencies support SEC Chairman Gensler’s announced plans to bring many broker-dealers in the Treasury sector under SEC authority.

TMARKET2.pdf…

8 11, 2021

Daily110821

Arezou Rafikian2023-06-01T14:52:06-04:00November 8th, 2021|2- Daily Briefing|

BIS Research Survey Finds Few Structural, Policy Impediments to Fast-Acting CBDC
A new BIS paper assesses CBDC’s impact across the full spectrum of economic activity given the centrality of data, moving the research discussion beyond the “reserves for all” approach (i.e., FedAccounts) on which much public debate focuses. This work thus tackles critical privacy, competition, integrity, and stability issues largely left aside in the BIS’s recent formulation of retail-facing CBDC. Press today indicate that the French have given tentative support to a wholesale-facing CBDC even as they raise the questions this BIS paper seeks to answer.

HFSC Dems Urge LGBTQ+ Financial Guidance
Ahead of its hearing examining financial-inclusion barriers for the LGBTQ+ community, HFSC’s majority staff memo indicates the Diversity and Inclusion Subcommittee will tomorrow debate draft legislation that would require federal financial regulators to issue guidance on LGBTQ+ inclusion.

Inter-Agency Treasury-Market Rewrite Takes Shape
Ahead of a conference next month, the Intra-Agency Working Group on Treasury Market Surveillance today set principles to guide further action to stabilize the U.S. Treasury marketplace.

Hsu Demands Top-Down Climate-Risk Management
Acting Comptroller Hsu today followed up last week’s announcement of near-term OCC climate-risk guidance for big banks with a set of questions he urges directors use to press senior management to action. Noting that directors should challenge any managerial confidence that climate risk is indeed being well addressed, the goal of this inquiry is climate-risk readiness by the end of next year.

Bowman Reiterates Need for Servicer Readiness, Regulation
Fed Gov. Bowman today …

2 11, 2021

FedFin Assessment: The Near-Term Stablecoin Regulatory Agenda

Arezou Rafikian2023-06-02T13:04:23-04:00November 2nd, 2021|The Vault|

As noted yesterday, the President’s Working Group on Financial Markets (PWG) was joined by the OCC and FDIC yesterday issuing a report calling for prompt Congressional action to regulate stablecoins and, even in its absence, also for fast action by federal regulators and the FSOC. In part because it poses the largest regulatory void, the most worrisome of the risks the report details arises from the role stablecoins may play in the payment system and resulting threats to systemic stability and competition. Issues germane to digital-asset trading (defined to include lending and related activities) are described but largely left to regulators; SEC Chairman Gensler has made it clear (see Client Report INVESTOR19) that he intends to act and the CFTC-chair nominee has done the same.

The full report is available to retainer clients. To find out how you can sign up for the service, click here.

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2 11, 2021

CRYPTO21

Arezou Rafikian2023-06-02T13:03:50-04:00November 2nd, 2021|5- Client Report, Uncategorized|

FedFin Assessment: The Near-Term Stablecoin Regulatory Agenda

As noted yesterday, the President’s Working Group on Financial Markets (PWG) was joined by the OCC and FDIC yesterday issuing a report calling for prompt Congressional action to regulate stablecoins and, even in its absence, also for fast action by federal regulators and the FSOC. In part because it poses the largest regulatory void, the most worrisome of the risks the report details arises from the role stablecoins may play in the payment system and resulting threats to systemic stability and competition. Issues germane to digital-asset trading (defined to include lending and related activities) are described but largely left to regulators; SEC Chairman Gensler has made it clear (see Client Report INVESTOR19) that he intends to act and the CFTC-chair nominee has done the same.

CRYPTO21.pdf…

27 10, 2021

Daily102721

Arezou Rafikian2023-06-05T12:15:49-04:00October 27th, 2021|2- Daily Briefing|

Fed Seeks Views on Primary-Dealer Status for Spain
Providing a sharp reminder of the limits of national treatment, the FRB today sought comment on the treatment of U.S. sovereign-bond dealers in Spain prior to allowing a Spanish financial institution to become a primary dealer.

IOSCO Sets Tougher Resilience Standards
IOSCO today issued new outsourcing principles for the securities market, tightening them in the wake of the COVID crisis to reflect new operational-resilience concerns.

Fed Stands by LIBOR Hard Stop
Building on Acting Comptroller Hsu’s tough talk yesterday, FRB Senior Vice President Nathaniel Wuerffel today reiterated that new inter-agency guidance sets a hard stop not only on new LIBOR exposures at year-end, but also on additional or longer exposures under an existing contract.

FTC Turns Data-Security Screws
Continuing the Administration’s campaign to govern nonbank financial companies, the FTC today unanimously approved a new data-safeguards rule governing nonbank financial institutions. The rule

Daily102721.pdf…