An interesting article from CoinDesk presented two opposing views on the use of blockchain for securities lending by State Street execs. We examine the debate, and lean towards the argument that supporters still need to fix a big hole in the business model.
Senator Mark Warner (Democrat) of Virginia this week introduced a proposal for user privacy on technology platforms. The financial services industry will recognize this as a precursor to a US version of the General Data Protection Regulation (GDPR) in Europe.
In an interview with German media, ECB Executive Board Member Sabine Lautenschläger argued that strong bank regulation leads to strong banks. US regulators would agree but have a different definition of what strong means. Is there common ground?
If UST repo is competing with the supply of US Treasuries for cash investors, then higher UST rates should mean that repo cash providers have to provide higher rates, right? And that means SOFR would be higher. We tested this idea with publicly available data. Our conclusions aren't as linear as the theory would suggest.