The US Office of Financial Research believes the evidence does not support claims that the Volcker Rule caused declines in banks' bond inventories, but the leverage ratio may have driven a reduction in the use of government bonds as repo collateral.
Latest articles from Philip Alexander

Insurance resolution principles take shape
The Financial Stability Board proposals for insurance resolution strategies allow for significant supervisory discretion to reflect specific business models at each global systemic insurer.

Stress testing moves into new territory
Regulators are seeking more information on systemic and liquidity risks from stress testing, but computational burdens are rising.

Flexible FSB seeks to meet most concerns on TLAC
A longer timeline and clearer structure for total loss-absorbing capacity will help banks comply, but much depends on crisis management groups.

Exchange-traded funds join liquidity watchlist
Regulators on both sides of the Atlantic are raising concerns about the systemic risks of open-ended and exchange-traded funds holding illiquid assets.

Insurers seek two-step approach to global capital standards
The industry is urging regulators to avoid superseding local regimes at the first step of developing global insurance capital standards.

Resolution stays extended
The stay protocol signed by global systemic banks to promote orderly resolution of large dealers has been extended to include securities financing transactions.

Fresh warning on EU repo markets
The leverage ratio and net stable funding ratio could make securities financing activities unprofitable for broker-dealers, threatening the availability of derivative collateral and the business model of hedge funds that rely on leverage.
FSB urges better repo reporting
The Financial Stability Board wants national authorities to report securities financing transactions at least monthly, with the means to disaggregate global consolidated trade data.

MiFID delay looming
The European Securities and Markets Authority has warned that some reporting systems needed to implement the Markets in Financial Instruments Directive will not be ready for the go-live date in January 2017.