Dismal's Smacks

🌙 ☀️

Sign in Subscribe

🗣 Discussion / Question

Do y'all remember when Barclays offered and sold an unprecedented amount of securities— cumulatively totaling approximately $17.7 billion from June 26, 2019 - March 9, 2022 & the SEC ordered a $200,000,000 civil penalty?

SEC requests an extension until November 30, 2023 to submit plan on being paid. Source: https://www.sec.gov/litigation/admin/2023/34-97632.pdf In the Order, the Commission found that BBPLC failed to put into place any internal control around the real-time tracking of securities being offered or sold

Comparing FDIC Quarterly Banking Profile: 137,729,743 Swaps in the first quarter of 2023 (+27.86% from same point in 2021--in the first quarter of 2021, there were 107,718,346 swaps).

With this uptick in swaps, it sure would be GREAT if CFTC was publishing swap data! Oh wait, they've hidden it... Reddit Post

Gary Gensler going hard AF at Money Market Funds today:

"Money market funds and open-end bond funds, by their design, have a potential liquidity mismatch—between investors’ ability to redeem daily on the one hand, and on the other, funds’ securities holdings that may have lower liquidity." Hmm... Reddit Post

Based on Gary's comments, it would seem Short-term Investment Funds and Collective Investment Funds are trying to sacrifice the 'rest of us' to the bear? I wonder if it is 'Cocaine Bear'?

FICC - MBS Alert! As of today, J.P. MORGAN SECURITIES LLC’s JSCX Clearing account has no open trade obligations on the books of the MBS Division of FICC. Effective immediately J.P. MORGAN SECURITIES LLC will terminate its JSCX account.

https://www.dtcc.com/-/media/Files/pdf/2023/5/23/MBS1226-23.pdf From a post earlier today: JP Morgan securities LCC: From January 2019 to July 2022, the firm’s financial risk management controls and supervisory procedures were not reasonably designed to prevent certain erroneous orders that exceeded appropriate

Revisiting quotes since April, hedgies are fucked?

3 times now in the last 5 days hedge funds have been called out for receiving the vast majority of their repo financing in the non-centrally cleared market, where haircuts or initial margin requirements are not necessarily applied

3 times now in the last 5 days hedge funds have been called out for receiving the vast majority of their repo financing in the non-centrally cleared market, where haircuts or initial margin requirements are not necessarily applied and that this might create greater risk in times of stress. Why?