senior vice president, Astec Analytics, SunGard’s capital markets business
Contributor: David Lewis
This blog post was taken from the Astec Analytics Securities Lending Focus for April 2013.
In the early 18th century, the bursting of what became known as the South Sea Bubble broke many fortunes. The East India Company, riding high on the global dominance of the British Empire, issued huge quantities of highly priced stock to hungry investors who believed the company’s monopoly on South American trade could not fail.
Unfortunately, they were wrong, and their clamor for the shares blinded them to the fundamental weaknesses of the company. A sudden realization burst the bubble, and the shares became worthless almost overnight. I am not, of course, directly comparing certain countries’ debt issuance with that of incompetent 18th century industrialists, but there is a certain similarity in the desperation of investors seeking safe places to put their money and the resultant bubbles in prices such actions create. ... read more
vice president, risk solutions, SunGard's capital markets business
Contributor: Marcus Cree
This blog post was originally published by DerivSource.
In March of 44 BC, Gaius Julius Caesar was killed on the steps of the Forum of Rome – before his ambition to centralize power in the Republic, removing the checks and balances of Roman politics, could be fully realized. It is striking that the date for mandatory clearing is set for mid-March 2013, and there are clear parallels to March 15, 44 BC, better known as the Ides of March.... read more
senior product specialist, SunGard's capital markets business
Contributor: Magnus Almqvist
A version of this blog post was originally published by Brasil Econômico.
The Brazilian capital markets are continuing their exciting evolution into a high-liquidity, low-entry trading and investment space.
To date, Brazil’s BM&FBOVESPA has not shared its in-house clearing services with rivals, preventing the emergence of a competitive exchange landscape similar to what we see in the U.S. and Europe. In addition, buying equities is still a novelty for most individual investors in the country.
With trading largely focused on large-cap companies and executed by institutional traders, the emphasis on active, automated and near real-time market abuse and insider trading detection is just emerging on the Brazilian scene.... read more
market analyst, Astec Analytics, SunGard's capital markets business
Contributor: Karl Loomes
This blog post was originally published by TabbFORUM.
In a two-part story, we examine the past and present of securities lending data. In part two, we discuss current examples coming from Europe.
In the second in our series analyzing the benefits of intraday securities lending data, we will be focusing not on what has happened already or what could happen in the future, but what is happening right now. We will be looking at companies that are seeing some of the highest borrowing rates and utilization levels in the markets today. These are companies where daily rate changes can be hundreds of basis points, where knowing what is happening, as it happens, translates into real money gained or lost. This is a look at what is just too hot to miss.... read more
Contributor: Daniel Parker
This blog post was originally published on FOW.
The EU rejection of EMIR on February 5, 2013 is specifically directed at non-financial companies, such as airlines, agriculture firms and other corporates that use derivatives to hedge against commercial activities. The ruling likely provides much-deserved relief to non-financial hedgers by modifying, reducing or potentially eliminating a threshold-based clearing obligation.... read more