The European Central Bank’s (ECB) decision to stick to its bond buying program despite strong EU-wide economic growth has damped hopes in the market that interest rates will rise any time soon. This loose monetary policy can be felt in the real economy and has effects that reach into the post-trade business as well.
"Quantitative Easing has major implications for the securities finance industry, in particular when it comes to capital requirements and risk management," said Philippe Seyll, Co-CEO at Clearstream Banking S.A., when announcing Clearstream’s monthly figures:
Philippe Seyll, Co-CEO of Clearstream Banking Luxembourg
Philippe has previously touched upon the challenges securities finance is facing:
Other articles deal with the lessons the financial industry has learned after Lehman...
... and whether measures such as QE have a negative impact on the industry: