Financial News For You – May 28, 2023

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Editor’s Note: Yes, Yes, Yes…financial organization, or the way monies are handled by the global banking community, are changing quickly! Why?

All banking processes are being readied for a tremendous increase in monies being handled, which will leave us ALL to BE in…

Quantum Joy!

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Latest News

• 25MAY2023Press Release: CFTC Orders a California Commodity Trading Advisor to Pay More Than $4 Million fo… The CFTC today issued an order filing and simultaneously settling charges against Sharief Deona McDowell, of…
• 24MAY2023Public Statements & Remarks: Statement of Commissioner Kristin N. Johnson: Enforcement Action To Stop Bitcoin… 
• 24MAY2023Press Release: CFTC Charges Five Defendants with Fraudulent Digital Assets Trading Scheme The CFTC today filed a civil enforcement action in the U.S. District Court for the Central District of…
• 23MAY2023Public Statements & Remarks: Statement of Commissioner Kristin N. Johnson in Support of Enforcement Action Inv… 
• 17MAY2023Press Release: CFTC Staff Issues an Advisory Related to Prime Brokerage Arrangements and Derivat… The CFTC’s Division of Clearing and Risk today issued a staff advisory that encourages entities using prime…

The financial services industry, in coordination with its regulators, is planning to shorten the settlement cycle for equities, corporate bonds, municipal bonds, unit investment trusts, and financial instruments comprised of these security types (e.g., ADRs, ETFs), from the current cycle of trade date plus two business days (T+2) to trade date plus one business day (T+1).
The SEC has approved May28,2024 as the transition date for the move to a T+1 Settlement Cycle.
This document outlines the systems and processing changes required to move to a one-day settlement cycle for DTCC subsidiaries — Institutional Trade Processing (ITP), National Securities Clearing Corporation (NSCC) and The Depository Trust Company (DTC). Clients, participants, and vendors of these entities are requested to review this document to determine the impact of these changes on their respective systems and operational processes.

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This one means the all banks must have real reserves, not fiat money:

ISO 20022 are Standards are so integrated into our world it’s easy to forget they exist. Yet it’s standards that allow you to call or text anyone even if they have a different type of phone or carrier than you, or withdraw cash from an ATM machine not owned by the financial institution that issued your card. In the financial industry, messaging standards are what make it possible for systems and networks around the world to communicate with each other.

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This one will effect everyone with adjustable rate items:

The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. The SOFR includes all trades in the Broad General Collateral Rate plus bilateral Treasury repurchase agreement (repo) transactions cleared through the Delivery-versus-Payment (DVP) service offered by the Fixed Income Clearing Corporation (FICC), which is filtered to remove a portion of transactions considered “specials”. Note that specials are repos for specific-issue collateral, which take place at cash-lending rates below those for general collateral repos because cash providers are willing to accept a lesser return on their cash in order to obtain a particular security.

The SOFR is calculated as a volume-weighted median of transaction-level tri-party repo data collected from the Bank of New York Mellon as well as GCF Repo transaction data and data on bilateral Treasury repo transactions cleared through FICC’s DVP service, which are obtained from the U.S. Department of the Treasury’s Office of Financial Research (OFR). Each business day, the New York Fed publishes the SOFR on the New York Fed website at approximately 8:00 a.m. ET.

For more information on the SOFR’s publication schedule and methodology, see Additional Information about Reference Rates Administered by the New York Fed.

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