Week InReview

"Underneath the relative stability in headline measures of activity and pricing, there are signs of banks being less willing to undertake repo market intermediation, compared to the period before the crisis. The volatility in prices and volumes around balance sheet reporting dates can be associated with banks in some jurisdictions contracting their repo exposure in order to 'window dress' their regulatory ratios."

The Bank for International Settlements in a report about  repo market functioning  (see story below).
Fri Apr 14, 2017
Let's recap
In case you missed it . . .
Fear is creeping back into markets as gold, volatility return

The calm in stocks worldwide is giving way to concern, with investors in Europe and the U.S. rushing to hedge against declines and a Credit Suisse Group AG index flashing a warning as the list of economic and political obstacles grows (Apr 13)


Service aimed for 2018 to help members flag possible fraud; initiative prompted by $81 million Bangladesh heist last year (Apr 11)

Rock star era at risk for Wall Street analysts facing fee reform
Firms seen cutting $300 million out of research budgets; providers race to come up with new pricing models by January (Apr 11)

Nothing to fear but the lack of fear in markets
Investors have taken recent geopolitical events in stride, but that won't last forever (Apr 9)

Corrections are the necessary wildfires of financial markets
Robin Wigglesworth considers the likelihood of a doomsday-style volatility inferno (Apr 8)
The Cyber Cafe
Cybersecurity news every Friday
Why it's totally possible this group of hackers is the CIA
To folks at Symantec, the hacking group they call "Longhorn" has always seemed like a state actor. The group has hacked 40 "targets" in 16 nations, according to Symantec. Longhorn has gone after governments as well as groups involved in finance, energy, telecommunications, education and much more.  "All of the organizations targeted would be of interest to a nation-state attacker," the Symantec Security Response team wrote on Monday.

DARPA to eliminate "patch & pray" by baking chips with cybersecurity fortification
Defense Advanced Research Projects Agency program wants to have hardware-anchored security become a standard feature of integrated circuit
BIS: Global repo markets in state of flux
Further study is needed
(Apr 13) -- According to a report by the Bank for International Settlements' Committee on the Global Financial System (CGFS), it is too early to say what causes changing availability and cost of repo financing.  Regional differences and the transitional state of repo markets make it difficult to establish strong links between drivers and visible market changes, as well as recommend policy changes. The CGFS - chaired by William C. Dudley (President and CEO of the New York Fed) - monitors developments in global financial markets for central bank governors.
IOSCO's 42nd annual conference
... in Montego Bay next month
(Apr 12) --  The International Organization of Securities Commissions announced their 2017 Public Conference on "The Role of Markets and Market Regulators in the Post-Crisis World" to be held May 17-18 in Montego Bay, Jamaica.
TMPG publishes minutes
... and Apr 13th agenda
(Apr 13) --  The New York Fed's Treasury Market Practices Group (TMPG) published the minutes for their February 28th meeting and the agenda from their April 13th meeting.  The Apr 13th meeting included a presentation by the Fixed Income Clearing Corporation (FICC) on central clearing for the repo market.
Binge reading disorder
Hand-curated, chosen with love
A masterclass in calling bullshit
Puffed-up nonsense has been deemed worthy of academic study

Lies, damn lies, and financial statistics
Most investors have a vague sense they're being ripped off. Here's how it happens

When it comes to investing, human stupidity beats AI
No matter how advanced technology becomes, natural instincts will have the upper hand