Tag Archives: Repurchase

ESMA Updates its Collateral Diversification Rules for MMFs

By Todd Zerega and Tom Watterson On December 20, 2013, the European Securities and Markets Authority (“ESMA”) proposed a revision (the “Proposed Revision”) to the collateral diversification requirements in the Guidelines on ETFs and other UCITS issues (the “Guidelines”). The Guidelines included a requirement that UCITS diversify the collateral held under “financial derivative transactions,” including repos, by … Continue Reading

ESMA Collateral Diversification Rules with Respect to Repo May Hamper Operation of Government MMFs in Europe

By Todd Zerega and Tom Watterson In December of 2012, the European Securities and Markets Authority (“ESMA”) adopted Guidelines on ETFs and other UCITS issues (the “Guidelines”) that included a requirement regarding the diversification of collateral held for derivatives and repos. Section 43 e) of the Guidelines requires that UCITS diversify the collateral held under … Continue Reading

NY Fed Revises Overnight Fixed-Rate Reverse Repo Exercises

  By Todd Zerega and Cátia Kossovsky Effective Monday, October 21, 2013, the Federal Reserve Bank of New York (FRBNY) revised the terms of its daily, overnight fixed-rate reverse repurchase operational exercise, to increase the fixed rate from 1 basis point to 2 basis points. All other terms of the exercise will remain the same. … Continue Reading
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