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ICE Clear Europe Limited Approves Rule Change for Collateral & Haircut Procedures: "allocated gold would give ICE Clear Europe an interest in specific bars of gold, rather than an interest in shared pool of bars of gold."

Only 'DRS'd' Gold counts as collateral, no more IOUs! Wut Mean?: * ICE Clear Europe is registered to clear security-based swaps and requires its Clearing Members to transfer assets, like cash, as collateral to manage risks from positions they clear. * This collateral is termed "Initial Margin&
dismal-jellyfish ๐Ÿ“ฐ News
BTFP usage UP AGAIN ($106.684B vs $105.078B on 7/26), the 9th consecutive week over $100B. This looks more and more like there's an over-reliance on Fed Funding--growing faster than inflation 'should be,' I believe the BTFP is a moral hazard!

BTFP usage UP AGAIN ($106.684B vs $105.078B on 7/26), the 9th consecutive week over $100B. This looks more and more like there's an over-reliance on Fed Funding--growing faster than inflation 'should be,' I believe the BTFP is a moral hazard!

Good afternoon Superstonk, HAPPY almost Friday! Borrowing from the Bank Term Funding Program hit a NEW all time high--the 9th consecutive week above $100 billion! What we are monitoring: 1. Bank Term Funding Program (BTFP) 2. Discount Window/Primary Credit 3. "Other Credit Extensions" I hope to shed
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics

Submission of Rule Filing SR-FICC-2023-011 Portfolio Differential Charge. FICC conducted a study from 11/2021 to 10/2022, had the PD Charge been implemented during this period, it would've averaged $661 million in the morning. & $822 million at noon.

FICC-2023-011: Wut Mean?: * FICC is introducing a new component, the PD Charge, to improve the way they calculate the GSD Clearing Fund's Required Fund Deposit. * This will address the risks arising from fluctuations in a Memberโ€™s Margin Portfolio between the times of collecting their required deposits. * FICC,
dismal-jellyfish ๐Ÿงฑ Market Reform

Submission of Rule Filing SR-FICC-2023-012 โ€“ Margin Liquidity Adjustment (MLA) Charge. FICC has [REDACTED] the Margin Liquidity Adjustment Model Document and has filed it separately with the SEC.

SR-FICC-2023-012: Wut Mean?: FICC is proposing three main changes: 1. Better Calculations for Sponsored Members: For members sponsored by multiple entities, FICC wants to improve how they calculate a specific charge (MLA Charge) to better address the risks of these members possibly not fulfilling their obligations. This includes an additional
dismal-jellyfish ๐Ÿ“ฐ News

William Galvin, Massachusettsโ€™ top securities regulator sent JPMorgan, Morgan Stanley, Tradier Brokerage, US Tiger Securities, E-Trade, Savvy Advisors & Hearsay Systems a letter asking how they use AI

Do they ensure that the AI will not put the interests of the firm ahead of their clients? Sources: https://www.investmentnews.com/galvin-launches-investigation-into-brokers-use-of-ai-240703 https://www.reuters.com/technology/massachusetts-regulators-launch-probe-into-ai-securities-industry-2023-08-03/ TLDRS: * The state of Massachusetts is concerned about what it calls a growing and potentially unchecked use of artificial intelligence
dismal-jellyfish ๐Ÿ“ฐ News

Since the introduction of the Supplementary Leverage Ratio in 2018, most of the top six U.S. bank holding companies have kept SLRs over the 5% mark.

However, recent trends show these ratios nearing the minimum 5% requirement, as total assets rise faster than Tier 1 capital. Supplementary Leverage Ratio: Source: Board of Governors of the Federal Reserve System, Consolidated Financial Statements for Holding Companies (Form FR Y-9C) Total Leverage Exposure: Note: Total leverage exposure is the
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics