BIS publishes paper on collateral management: BIS has published a paper on developments in collateral management services which are driven by increased use of collateral linked to regulatory requirements such as central clearing, the liquidity coverage ratio or limits on rehypothecation. The paper notes the increased demand for collateral management services by the buy-side. It also warns that the cross-border deployment of securities in tackling collateral fragmentation may increase risk if there is no clarity or agreement on relevant legal aspects that may vary by jurisdiction. (Source: Developments in Collateral Management Services)

BIS publishes report on non-bank retail payments: BIS has published a report on the role of non-banks in the provision of retail payments, which covers all activities in the payment chain and instruments. The report flags certain operational, level-playing-field and consumer protection issues that national competent authorities may want to address. (Source: Non-Banks in Retail Payments

Basel Committee publishes first impact analysis of trading book review: The Basel Committee has published the results of its first Quantitative Impact Study related to its fundamental review of the trading book. This first exercise involves an analysis of the application of an internal models-based approach to trading book hypothetical portfolios, whereas the second will analyse the capital impact of applying the new framework on actual holdings and lead to its final calibration. One of the initial findings of this first exercise is that the proposed internal models approach would increase the risk measure for all asset classes except for equities. (Source: Analysis of the Trading Book Hypothetical Portfolio Exercise