Archive forSeptember, 2014

Recent Repossession, Alpha Armeno Guarantees Financing for Bad Credit …

Winnetka, CA — (ReleaseWire) — 09/29/2014 — It is really tough to illustrate the sufferings of the people with bad credit while trying to buy a car in installments from somebody or by taking loans from a bank. Bad credit Los Angeles is a situation when a person fails to pay a bank within the time frame and thus attain a low credit score. This score effects significantly while taking loan from the banks again and also to manage somebody to allow installment payments. This is because there is a greater chance that their money would not be repaid.

What is not taken into consideration is the people with a bad credit are the ultimate sufferer. The person might not have managed to pay in time due to loss in business or similar incidents where little or nothing could be done. It is unfair to leave them in their hellish sufferings, doing nothing about it.

Alpha Armeno Company took a stand to help the bad credit Los Angeles people by offering bad credit financing. They played a vital role in helping people to come back after suffering from bad credit. The people who were utterly despaired about their credit score were asked to forget the past and think about the future. They offer people to have the best buying experience with the least possible effort. They ask people to buy used cars within a very fair price range; not only this – to put the customer’s priority first, they offer monthly payments almost touching zero. That is; the stress of bearing installment payments is also very less. It shows how much they actually value for the people.

Alpha Armeno Company has to offer a lot of used cars to be sold, with an eye catching bad credit financing offers. They are offering more than 150 cars with prices ranging from less than $5000 to more than $9000. The payments can be done in several installments, and they are also offering cash refunds. To take off more burdens from the people, they have special offers that would let people buy cars even at a price of $1995. They aim to finance the vehicles to a great extent to make the lives of bad credit Los Angeles people easier. It is indeed a huge step for a company to take initiative steps that would benefit the human being who are in crisis involving bad credit.

They are letting the people who are facing trouble with bad credit to start a new credit application which would not only help them to buy a new car, but would boost their reputation that was affected by low credit score. The people with bad credit Los Angeles trouble has to fill up an application form to start their brand new credit application and forget about the unpleasing past.

About Alpha Armeno Company
Alpha Armeno Company has been relentlessly trying to help people with their bad credit financing offer. Their significant steps to provide the best within the least possible effort would effectively takeoff the pain of carrying the reputation of being a victim of bad credit. They have done a lot for the sake of the humanity, and their hospitality is worth of being appreciated.

Contact Info:
Business Info : Alpha Armeno, 19701 Sherman Way, Winnetka CA 91306 800-344-3984

For more information on this press release visit:

Comments off

Stonington finance board chairman resigns effective Wednesday

Stonington Board of Finance Chairman John OBrien, who has battled health problems in recent months, has informed the town he will resign Wednesday.

In July, OBrien had told the town he would resign as of Oct. 1, but then he began to reconsider that decision. After a recent hospitalization, OBrien, a Democrat, submitted a letter on Friday reaffirming that he would step down as ofWednesday.

The Democratic Town Committee is now seeking a candidate to complete the remainder of OBriens six-year term, which ends in November 2017.

The town committee will recommend a replacement to the remaining Democratic members of the finance board, who then will appoint OBriens successor.

Town committee Chairman Ray Trebisacci said today that any interested Democrat may contact him. He said the town committee would like to choose a candidateby Saturday so it could make the recommendation to the finance board in time for its next meeting on Oct. 15. He said a few Democrats already have expressed interest.

We really appreciate Johns long service to the Board of Finance and his fine tradition of government and community service, Trebisacci said. Were sad he has to resign. His presence will be missed.

He has always tried to keep the well being of all the citizens in mind when making a decision, acting board chairman Glenn Frishman said today.

OBriens departure also means the finance board will have to choose a new chairman. Frishman, who had along tenure as chairman before OBrien took over, declined to say whether he would be interested in serving again as chairman.

Ill wait to see what my colleagues on the board want to do, he said.

The Charter Revision Commission recently began reconsidering the way finance board members are elected after a citizens group collected more than 1,500 signatures to force the creation of the commission to examine the question. The commission also will consider decreasing the six-year term of service for members and having an odd instead of even number of members.

Currently, every two years, two members each with six-year terms come up for re-election. The current procedure calls for the Democratic and Republican town committees to nominate one candidate for each of the two positions. This means that if there is no third party, petitioning or independent candidate, the two party-endorsed candidates run unopposed and are elected. Voters are asked to select one of the two candidates on their ballots, but both are elected. Petitioners want to change the charter to ensure there are always contested elections.

The petition effort began this spring when some residents became upset after more than 500 people attended a public hearing on the proposed 2014-15 budget and called on the finance board to restore the money it had cut from the school budget and let the voters decide. The finance board refused. Some residents felt the board had ignored them and they then discovered the board members had run unopposed.

Twitter: @joewojtas

Comments off

UPDATE 1-Market Chatter-Corporate finance press digest

(Updates to remove Boeing and Zalando)

Sept 30 (Reuters) – The following corporate finance-related
stories were reported by media:

* New Yorks financial regulator wants some Commerzbank AG
employees to be fired as part of a settlement over
allegations the German lender improperly processed transactions
with Iran and other countries facing US sanctions, according
to people familiar with the matter.

* China Investment Corp will raise S$396 million ($311
million) by selling about a third of its shares in commodity
trader Noble Group Ltd, a source said, sending Nobles
shares down as much as 9 percent.

* Japans SoftBank Corps talks to acquire
Hollywood studio DreamWorks Animation SKG Inc have
cooled, the Wall Street Journal reported, citing people familiar
with the matter.

* Marathon Petroleum Corp plans to finish installing
a new condensate splitter at its 80,000-barrel-per-day refinery
in Canton, Ohio, by the US Thanksgiving holiday, Nov. 27,
three people familiar with the plans said.

* Pimco executives held a global staff meeting and video
conference with all employees on Monday to boost morale and
discuss the $2 trillion asset managers future, according to a
source close to the situation.

(1 euro = 1.27 US dollar)

For the deals of the day click on

For the Morning News Call-EMEA newsletter click on

(Compiled by Rishika Sadam in Bangalore)

Comments off

Finance chiefs recover their appetite for risk

The financial services firm’s quarterly snapshot of more than 100 chief financial officers at FTSE 350 businesses and large private firms found risk appetite at its highest since 2007, despite threats such as the deteriorating eurozone economy and uncertainties over next year’s general election.

The surge is being driven by a rebounding US economy, strong UK growth and easy access to finance, according to Deloitte. Nearly three quarters of finance chiefs – 72 per cent – believe now is a good time to take risk on to balance sheets, up from 65 per cent in the second quarter of the year and more than three times higher than two years ago.

The findings will be a boon to the Bank of England’s rate-setters who are looking for business investment to sustain a recovery so far largely dependent on consumer spending and the housing market during the past 18 months. The Bank’s Monetary Policy Committee is currently weighing when to raise interest rates for the first time in seven years with a first move pencilled in for early next year.

But despite any economic improvement, young people will continue to feel an intense squeeze on their living standards, the EY Item Club forecasts in a report released today.

The forecaster says the youth unemployment rate is set to remain “well above” the overall jobless rate over the coming years.

The Item Club also expects that people aged 16 to 24 will face the need to save ever larger sums to buy a house as prices continue to increase. Higher university tuition fees will also curb disposable incomes among the group.

The 16-24 unemployment rate dropped 16.6 per cent in the three months to July, down from 18.5 per cent in the previous quarter and a peak of 22 per cent in 2011. But the present rate is still higher than pre-crisis average levels of average 13.8 per cent and the current overall jobless rate of 6.2 per cent.

Comments off

Something that may have caused the Great Recession of 2008 is coming back

Subprime lending, which was blamed for sending the economy into a tailspin in 2008, is coming back.

The practice, also known as second-chance lending, allows people with a poor credit rating or a high risk of defaulting on debt repayment to get loan approval.

Think raucous car commercials on the radio: Bad credit? No problem! We say YES! Get a new car today! These type of loans are given at an above prime rate, meaning the interest rate is high sometimes costing the consumer thousands over the life of a loan.

It was the overpractice of subprime lending to homebuyers that spurred the 2008 financial crisis. A crisis few would want to relive. And yet, lenders are falling back into their old habits: Subprime loans are creeping back, asserts Zachary Karabell on Slate, this time in the form of auto loans.

In the United States, auto sales have mounted a postrecession high, thanks to a lowered bar in the approval rating of loan applicants. And according to Slate, more than a quarter of all auto financing (are) classified as subprime.

The practice of subprime auto lending has become so prevalent, in fact, that the CBS MoneyWatch ran a how-to article on financing a car when you have bad credit. The article assures people with big credit card balances and some late payments that plenty of loans are available for car shoppers with less-than-perfect credit.

But, what does this mean for our countrys economic future? And, is this a repeat of pre-2008 banking groupthink?

Ty Kiisel, a contributor to Forbes, explores those questions.

Im concerned that Wall Streets appetite for profits has lenders putting subprime borrowers into auto loans they really cant afford. It doesnt take much to make a connection to what was happening before the bottom fell out of the home mortgage business, he writes. Granted, an increase in auto loan defaults wont do the same thing to the economy the mortgage loan crisis did, but does it make sense to make auto loans to people who really cant afford them? Isnt the long-term financial impact of that on the economy a negative?

Michael Yglesias of thinks so. He claims that the comeback of subprime loans no matter what the medium is a disaster.

The article explained that not all lending is bad. Borrowing for productive investments, like a small-business loan, that pay off in the long-run are worth the short-term debt.

But looser lending standards for consumer loans (made possible by the implicit guarantee of government bailouts if too many go bad) doesnt have these advantages, Yglesias writes. Its just a kind of extremely clumsy and opaque shifting around of economic resources.

On the other hand, Slates Karabell, said subprime loans are far from representing the kindling for new crisis, subprime loans serve a vital need, as they always did. We need not less of them but more alongside far greater transparency and accountability.

Subprime car loans are less of a risk than home loans for a several reasons. Nick Timiraos of The Wall Street Journal mentions three: the loans are smaller, cars can be repossessed faster than homes when borrowers default, and the collateral is easier to value.

He even goes as far as to say that easing loan qualifications may need to expand back to the mortgage world. Timiraos explains that while car factories may be humming, the housing markets uneven recovery means the economy isnt growing at the clip experts hoped it would this year.

But will subprime auto lending lead to another financial crisis? It seems to be a wait-and-see moment. In an interview with CNBC, William Ford of Ford Motor Companies cautions that we have to be careful because we dont want to get into a situation like we did before, where consumers are over extended.

Fortune reported that auto loan delinquencies have spiked in the last quarter due to looser lending standards. Interest rates for these loans are sometimes as high as 29 percent, according the The New York Times.

The Times reports that many subprime borrowers must have their car outfitted with a so-called starter interrupt device, which allows lenders to remotely disable the ignition. Using the GPS technology on the devices, the lenders can also track the cars location and movements. Borrowers must stay current with their payments, or lose access to their vehicle.

Comments off

The Only Way You’ll Ever Catch Up to the 1%

Source: via Flickr.

Good news, America: We have more money as a whole than we had at the end of the first quarter!

According to the Federal Reserve, household wealth jumped 1.7% in the second quarter to an all-time record of $81.5 trillion, with stock and mutual-fund portfolios gaining about $1 trillion and rising home values adding another $230 billion. For some context to show how far weve come since the Great Recession, total household net worth dipped as low as $55.6 trillion in the first quarter of 2009.

However, for many Americans, thats where the cheering stops and the reality of the socioeconomic divide between Americas richest people and the middle class sets in.

Based on data from USA Today that referenced reports from the Federal Reserve, median household income has actually dropped 2% since 2010. Yet average net worth was basically unchanged at $534,600 as of the end of 2013 thanks to substantial stock market gains, which have primarily benefited affluent individuals. In fact, USA Today points out that just 10% of all US households own roughly 80% of stocks, making the middle class reliant on home equity appreciation for a good portion of their net worth gains. This is the reason why the average net worth of the top 10% of households was $3.3 million, while median household net worth was a proverbial mile away at just $81,200 as of the end of 2013.

Do this or youll never catch up to the 1%
As this income rift widens, the implication grows that middle-income and even lower-income individuals are cheating themselves out of their chance to bridge the gap between affluent individuals and themselves by not doing the one thing that could narrow this gap: investing in the stock market.

Of course, it should be noted that the stock market isnt without risk. Volatility is common in stocks: The Dow Jones Industrial Average, perhaps the most storied American stock index, has fallen more than 20% on nine separate occasions since 1960. However, holding stocks over the long term has been shown to be one of the most prolific wealth-creators for investors.

Why not focus on a shorter time period, you ask? Because investing in the stock market isnt about buying a ticker symbol. Rather, its about investing in quality businesses that have the ability to effect social and economic change over time.

Comments off

Cash-poor Afghanistan will delay paying civil servants: finance ministry official

KABUL (Reuters) – Afghanistan will delay paying salaries to hundreds of thousands of civil servants next month because it does not have enough money, a finance ministry official said on Saturday.

The acknowledgment that it is now impossible to pay October salaries on time highlights the huge challenges facing new leader Asraf Ghani, who is to be sworn in as president of the violence-torn country on Monday after months of turmoil following a disputed election result.

Alongside the fight with the Taliban insurgency, Afghanistans fiscal crisis is the most immediate problem facing Ghani and coalition partner Abdullah Abdullah. The two agreed to a unity government last week, breaking the election deadlock.

Afghanistans treasury now holds less than the 6.5 billion Afghanis ($116 million) needed to begin processing monthly salaries, said Alhaj Mohammad Aqa, director-general of treasury in the ministry.

He would not say exactly how much money the government had in its coffers, only that it was not enough to meet the payroll.

Right now, we dont have that much, Aqa said.

The October shortfall will affect only civilian government workers – Afghan military and police salaries should come on time because they are paid from a separate fund, he added.

Afghanistan has asked for $537 million in emergency funds from the United States to meet its budget commitments through December, but so far has not received approval, Aqa said.

Even if that additional funding is approved within a week its now too late to process the October payroll on time and government salaries will come at least one or two weeks late, he added.

It will be the first time in recent years that the government has had to delay paying salaries for lack of funds, Aqa said, although he acknowledged that civil servants are often paid late because of poor administration.

Next months payroll processing was supposed to start on Saturday and payments made on Oct. 14. Payroll processing, which generally takes one or two weeks, will now start in mid-October after the Muslim holiday of Eid al Adha, Aqa said.

By that time, he said, the government hopefully will have collected enough revenue — or gotten a cash infusion from donors — to make up the shortfall.

After Eid I hope we can start the payments, but not at one time for all government employees, Aqa said. Maybe during the two weeks after, we can pay for them all.

Foreign donors already fund more than two thirds of Afghanistans budget, as they mostly have since the 2001 military intervention to topple the Talibans radical Islamist regime for sheltering al Qaedas leadership after the 9/11 terrorist attacks on the United States.

The Afghan government has long struggled to raise revenue through taxes and customs duties in a country with rampant corruption. Uncertainty surrounding the departure of foreign combat troops at the end of the year, plus the election turmoil of recent months, has sent revenue collections plummeting.

According to budget projections the government should have collected about 99 billion Afghanis ($1.7 billion) by the end September. Aqa said actual collections were short by 25 percent.

US ambassador James Cunningham recently confirmed that Afghanistan had asked for emergency money to pay its bills through the end of the year. He said any such additional funds would have to be borrowed from coming years donor commitments.

There isnt going to be new money, he said.

Any end-of-year bailout is likely to be conditional on commitments by the new government of Ghani and Abdullah to both cut government spending and find ways to increase revenue collection, he added.

(Additional reporting by Mirwais Harooni; Editing by Pravin Char and Greg Mahlich)

Comments off

Bravo for FICO

FICO will make two critical changes to the credit-score calculations: Paid or settled past-due debts with collection agencies will no longer be considered, and unpaid medical bills will be given less weight.

For more than 30 years, Dallas Habitat has issued over $75 million in mortgage loans with a 94 percent success rate and has never considered the two items FICO is addressing in our lending process. Contrary to some conservative critics, the continued penalization on these two criteria is not indicative of ability or desire to pay, impedes the ability to build wealth, and provides no public benefit.

When families buy our homes, they are building asset wealth, pulling themselves up by investing in a home.

FICO’s changes will open the lending market to hard-working families, bolstering their buying power to make the shift from struggling employed to stably building for the future. However, there’s still more to do, including tackling the next big issue: student loans.

Bill Hall, CEO,
Dallas Area Habitat for Humanity

Comments off

Self-Regulatory Organizations; The Fixed Income Clearing Corporation; Notice …

Federal Information News Dispatch, Inc.

Self-Regulatory Organizations; The Fixed Income Clearing Corporation; Notice of Filing Amendment No. 1 to Advance Notice Relating to the Government Securities Divisions Inclusion of GCF Repo(R) Positions in GSDs Intraday Participant Clearing Fund Requirement Calculation, and GSDs Hourly Internal Surveillance Cycles

Citation: 79 FR 58007

Document Number: Release No. 34-73187; File No. SR-FICC-2014-801

Page Number: 58007


   September 23, 2014.

   On January 10, 2014, Fixed Income Clearing Corporation (FICC) filed with the Securities and Exchange Commission (Commission) advance notice SR-FICC-2014-801 (Advance Notice) pursuant to Section 806(e)(1)(A) of the Payment, Clearing, and Settlement Supervision Act of 2010 (Clearing Supervision Act) /1/ and Rule 19b-4(n)(1)(i) /2/ of the Securities Exchange Act of 1934 (the Exchange Act). The Advance Notice was published in the Federal Register on February 10, 2014. /3/ On March 10, 2014, pursuant to Section 806(e)(1)(D) of the Clearing Supervision Act /4/ , additional information regarding this advance notice was requested. Pursuant to Section 806(e)(1) /5/ of the Clearing Supervision Act and Rule 19b-4(n)(1)(i) /6/ of the Exchange Act, notice is hereby given that on August 11, 2014, FICC filed with the Commission, Amendment No. 1 to the Advance Notice as described in Items I, II, and III below, which Items have been prepared primarily by FICC. /7/ The Commission is publishing this notice to solicit comments on the advance notice from interested persons.

   FOOTNOTE 1 12 USC. 5465(e)(1). END FOOTNOTE

   FOOTNOTE 2 17 CFR 240.19b-4(n)(1)(i). END FOOTNOTE

   FOOTNOTE 3 Securities Exchange Act Release No. 34-71469 (February 4, 2014), 79 FR 7722 (February 10, 2014) (SR-FICC-2014-801). END FOOTNOTE

   FOOTNOTE 4 12 USC. 5465(e)(1)(D). END FOOTNOTE

   FOOTNOTE 5 12 USC. 5465(e)(1). END FOOTNOTE

   FOOTNOTE 6 17 CFR 240.19b-4(n)(1)(i). END FOOTNOTE

   FOOTNOTE 7 FICC also filed the proposal contained in this amendment to the advance notice as a proposed rule change under Section 19(b)(1) of the Exchange Act and Rule 19b-4 thereunder. 15 USC. 78s(b)(1); 17 CFR 240.19b-4. See Securities Exchange Act Release No. 72908 (August 25, 2014), 79 FR 51630 (August 29, 2014). END FOOTNOTE

I. Clearing Agencys Statement of the Terms of Substance of the Proposed Advance Notice

   This filing constitutes Amendment No. 1 (Amendment No. 1) to the Advance Notice previously filed by FICC in connection with the Government Securities Divisions (GSD) inclusion of the underlying collateral pertaining to the GCF Repo(R) /8/ positions in GSDs noon intraday /9/ participant Clearing Fund requirement (CFR) calculation, and GSDs hourly internal surveillance cycles.

   FOOTNOTE 8 The GCF Repo(R) service enables dealers to trade general collateral repos, based on rate, term, and underlying product, throughout the day without requiring intra-day, trade-for-trade settlement on a Deliver-versus-Payment (DVP) basis. The service fosters a highly liquid market for securities financing. GCF Repo(R) is a registered trademark of The Depository Trust amp; Clearing Corporation. END FOOTNOTE

   FOOTNOTE 9 Noon intraday refers to the routine intraday margining cycle which is based on a 12:00 pm (ET) position snap shot. Pursuant to Rule 4, FICC may request additional margin outside of the formal intraday margin calls. END FOOTNOTE

II. Clearing Agencys Statement of the Purpose of, and Statutory Basis for, the Advance Notice

   In its filing with the Commission, FICC included statements concerning the purpose of and basis for the Advance Notice, as modified by Amendment No. 1, and discussed any comments it received on the Advance Notice. The text of these statements may be examined at the places specified in Item IV below. FICC has prepared summaries, set forth in sections A and B below, of the most significant aspects of such statements.

(A) Clearing Agencys Statements on Comments on the Advance Notice Received From Members, Participants, or Others

   Written comments relating to the change have not yet been solicited or received. FICC will notify the Commission of any written comments received by FICC.

(B) Advance Notice Filed Pursuant to Section 806(e) of the Payment, Clearing and Settlement Supervision Act.

1. Description of the Change

(i) Overview

   On January 10, 2014, FICC filed an Advance Notice with the Commission. The Advance Notice related to FICCs proposal to incorporate the underlying collateral pertaining to the GCF Repo(R) positions in its noon intraday participant CFR calculation, and its hourly internal surveillance cycles. This enhancement is intended to align GSDs risk management calculations and monitoring with the changes that have been implemented to the tri-party infrastructure by the Tri-Party Reform Task Force /10/ (the Task Force), specifically, with respect to locking up of GCF Repo(R) collateral until 3:30 pm (ET) rather than 7:30 am (ET). Subsequent to the initial Advance Notice filing, FICC discovered that a potential exposure may result from a GCF Repo(R) participants cash substitutions and early unwinds of interbank allocations. /11/ As a result, FICC is amending the initial Advance Notice to discuss the manner in which GSD intends to protect itself and its members from the potential exposure.

   FOOTNOTE 10 The Task Force was formed in September 2009 under the auspices of the Payments Risk Committee, a private-sector body sponsored by the Federal Reserve Bank of New York. The Task Forces goal is to enhance the repo markets ability to navigate stressed market conditions by implementing changes that help better safeguard the market. DTCC has worked in close collaboration with the Task Force on their reform initiatives. END FOOTNOTE

   FOOTNOTE 11 The early unwind of interbank allocations refers to the automatic return of the collateral from the reverse repo side (cash lender) to FICCs account at the repo sides (cash borrowers) settlement bank and the return of cash to the reverse repo side, which typically occurs before the opening of Fedwire. END FOOTNOTE

(ii) Historical Background

   Prior to the changes implemented by the Task Force, the underlying collateral pertaining to the GCF Repo(R) positions was locked up each afternoon (approximately 4:30 pm (ET)) and unwound at the beginning of the next business day (approximately 7:30 am (ET)). Thus, the GCF Repo(R) positions were included in the end of day (EOD) CFR calculations but not included in GSDs noon intraday CFR calculations. Because the GCF Repo(R) positions were not included in GSDs noon intraday CFR calculation, the noon calculation could result in an under-margined condition relative to the same EOD /12/ CFR. Thus, GSD imposed a higher-of standard on GCF Repo(R) participants, whereby their noon intraday CFR was the higher of the actual noon intraday CFR calculation or its prior EOD CFR calculation. /13/

   FOOTNOTE 12 As used herein prior EOD refers to the end of day cycle immediately preceding the current noon intraday cycle and same EOD refers to the cycle immediately subsequent to the current noon intraday cycle. END FOOTNOTE

   FOOTNOTE 13 For example, in the extreme case where a participants portfolio was comprised entirely of GCF Repo(R) positions, at each EOD margining cycle GSD could calculate a substantial margin requirement which had to be met by 9:30 am (ET) the next morning. But at each intraday margining cycle, GSD would calculate a negligible margin requirement (because GCF Repo(R) positions were not included at intraday). This would allow the participant to withdraw substantially all its margin collateral before the same EOD. In this case, if the participant defaulted overnight, GSD would hold almost no margin collateral from the participant while having the exposure of liquidating losses on a substantial GCF Repo(R) portfolio. To prevent this potential under-margin condition, GSD imposed the higher of standard. END FOOTNOTE

   With the advent of the Task Forces reform, which resulted in moving the unwind from 7:30 am (ET) to 3:30 pm (ET), details on the underlying collateral pertaining to GCF Repo(R) positions are now received from the clearing banks on an hourly basis and can be incorporated into the noon intraday CFR calculation. Substitutions of underlying collateral are now permitted between 8:30 am (ET) and 3:30 pm (ET). /14/

   FOOTNOTE 14 A key aspect of the GCF Repo(R) service is to give the repo side (cash borrower) the ability to retrieve its securities during the business day and deliver those securities to meet a delivery obligation. As a result, GCF Repo(R) was unwound in the morning. With the Tri-Party Reforms change in the unwind from 7:30 am (ET) to 3:30 pm (ET), participants now have access to their securities during the day via collateral substitutions. END FOOTNOTE

   At the time of the initial Advance Notice filing, GSD believed that the noon intraday CFR calculation based on the actual underlying collateral pertaining to the GCF Repo(R) positions provided a more accurate CFR and would be more equitable for participants rather than imposing a higher-of standard. In connection with this proposal, GSD performed the testing that was described in SR-FICC-2014-801. The testing revealed that a potential exposure may result from a GCF Repo(R) participants cash substitutions and early unwind of interbank allocations. This information became available after FICC formally filed the initial Advance Notice with the Commission. As a result, this information was not included in the filing at that time.

(iii) Proposed Change

   GSD plans to incorporate the underlying collateral pertaining to GCF Repo(R) positions in its noon intraday participant CFR calculation, and its hourly internal surveillance cycles. This enhancement is intended to align GSDs risk management calculations and monitoring with the changes that have been implemented to the tri-party infrastructure by the Task Force.

   In connection with the Task Forces tri-party reform, GCF Repo(R) collateral now remains locked up until 3:30 pm (ET), with substitutions permitted intraday at the times established by each clearing bank. Because the GCF Repo(R) collateral was unwound at 7:30 am (ET), the current production system does not include GCF Repo(R) collateral in the GSD noon intraday CFR calculation, and its hourly surveillance cycles. To account for the risk associated with the underlying collateral pertaining to the GCF Repo(R) positions, GSDs margin requirements currently apply a higher of standard, which means that the margin calculation takes the higher of the prior EOD core charge /15/ (which includes GCF Repo(R) collateral) or the current days noon intraday core charge (which does not /16/ include GCF Repo(R) collateral). However, now that the collateral is locked-up until 3:30 pm (ET), the noon intraday participant CFR and hourly surveillance calculations will be based on the actual locked-up GCF Repo(R) collateral. In the ordinary course of business, the higher of standard will not apply. However, this standard will remain available in the event that one or both clearing banks do not provide intraday underlying collateral pertaining to the GCF Repo(R) position data because such clearing bank, as applicable, is unable to provide the data.

   FOOTNOTE 15 The core charge consists primarily of value-at-risk, the implied volatility charge (also known as the augmented volatility multiplier) and the coverage component. END FOOTNOTE

   FOOTNOTE 16 Since GCF Repo(R) collateral is excluded, only DVP positions are included in the noon core charge. END FOOTNOTE

   In connection with the testing described in the Advance Notice, GSD observed that cash substitutions and early unwinds of interbank allocations resulted in reducing the underlying securities pertaining to GCF Repo(R) positions of impacted participants. As a result, GSD is proposing the Early Unwind Intraday Charge (EUIC) to protect itself and its membership from the exclusion of the portion of the underlying collateral pertaining to the GCF Repo(R) positions impacted by cash substitutions or early unwinds of interbank allocations. /17/ GSD will remove the higher of standard which will give margin relief to participants who truly have a lower portfolio risk profile at intraday, but will impose the EUIC to adjust for the exposure for the portion of the GCF Repo(R) portfolio impacted by cash substitutions and early unwinds of interbank allocations.

   FOOTNOTE 17 GSDs review during the parallel testing revealed circumstances under which a member would be charged an EUIC. If, however, a member is assessed an EUIC under circumstances that were not initially contemplated and the EUIC charge is deemed unnecessary, management will have the discretion to waive such charge. END FOOTNOTE

   The proposed change is consistent with Rule 17Ad-22 /18/ (the Clearing Agency Standards) which establishes the minimum requirements regarding how registered clearing agencies must maintain effective risk management procedures and controls. Specifically, consistent with Rule 17Ad-22(b)(1) /19/ and (b)(2), /20/ the proposed change (1) provides a more accurate and timely view of member positions and their corresponding exposures and (2) addresses exposures that arise as a result of certain cash substitutions or early unwind of interbank allocations. In sum, FICCs more accurate and timely calculations around and monitoring of GCF Repo(R) activity will better enable FICC to respond in the event that a member defaults. As such, FICC believes that the proposal promotes robust risk management, and the safety and soundness of FICCs operations, which reduce systemic risk and support the stability of the broader financial system which is consistent with the Clearing Agency Standards. /21/

   FOOTNOTE 18 17 CFR 240.17Ad-22. END FOOTNOTE

   FOOTNOTE 19 17 CFR 240.17Ad-22(b)(1). END FOOTNOTE

   FOOTNOTE 20 17 CFR 240.17Ad-22(b)(2). END FOOTNOTE

   FOOTNOTE 21 17 CFR 240.17Ad-22. END FOOTNOTE

(iv) Membership Outreach

   In connection with this initiative, FICC is providing an extended member parallel period which began on January 13, 2014. The parallel period has continued for over six months during which GCF Repo(R) participants have been able to view their production and test requirements on a daily basis. This allows members to assess the impact of the change in margining for the noon intraday CFR calculation and potentially adjust their GCF Repo(R) activity prior to implementation of the change. Because this proposal remains subject to the Commissions approval, the parallel testing period did not include the proposed EUIC. However, GSD has discussed the EUIC with the participants that are likely to be materially impacted by this proposed charge. These participants did not express any concerns about the EUIC.

2. Anticipated Effect on and Management of Risks

   FICC believes that the proposed change to incorporate the underlying collateral pertaining to the GCF Repo(R) positions in its noon intraday participant CFR calculation, and its hourly internal surveillance cycles, will improve its risk management by providing a more accurate and timely view of member positions and their corresponding exposures. FICC believes that the proposed changes will better reflect the actual risk in its members portfolios. For members who participate in the GCF Repo(R) service, this change will impact their CFRs. However, because of the parallel period, members will have time to review the possible impact and potentially modify their settlement and trading activity to align with the changes to the noon intraday CFR calculation. FICCs parallel period, which began on January 13, 2014, has covered over six months in order to give customers ample time to review the impact and consider changes to their portfolios.

   In addition to the above, FICC is addressing an exposure that may arise with the incorporation of the GCF Repo(R) positions in its noon intraday participant CFR calculation, and its hourly internal surveillance cycles. Specifically, in connection with the review of the testing that was described in the initial Advance Notice, GSD discovered that there were instances where exposure arose as a result of certain cash substitutions or early unwind of interbank allocations. This is because the noon intraday underlying collateral pertaining to the GCF Repo(R) positions of impacted participants may exhibit a different risk profile than their same EOD positions. The impact could be to increase or decrease the Value-at-Risk (VaR) component of the CFR.

   In certain instances, cash substitutions, for repo and reverse repo positions and the early unwind of interbank allocations for reverse repo positions, could result in higher cash balances in the underlying collateral pertaining to GCF Repo(R) positions at noon intraday than the same EOD, and could present a potential under-margin condition because cash collateral is not margined. In addition, it is likely that the cash will be replaced by securities in the next GCF Repo(R) allocation of collateral. The under-margin condition will exist overnight because the VaR on the GCF Repo(R) collateral in the same EOD cycle will not be calculated until after Fedwire is closed thus precluding members from satisfying margin deficits until the morning of the next business day. Accordingly, GSD will adjust the noon intraday CFR in the form of an EUIC, to address this risk. In order to determine whether an EUIC should be applied, GSD will take the following steps:

   1. At noon, GSD will compare the prior EOD VaR component of the CFR calculation with the current days noon intraday VaR component of the CFR calculation.

   2. If the current days noon intraday VaR calculation is equal to or higher than the prior EODs VaR calculation then GSD will not apply an EUIC. If however, the current days noon calculation is lower, then GSD will proceed to the step 3. below.

   3. GSD will review the GCF Repo(R) participants DVP and GCF Repo(R) portfolio to determine whether the reduction in the noon calculation may be attributable to the GCF Repo(R) participants intraday cash substitutions or early unwind of interbank allocations. If so, then GSD will apply the EUIC.

   4. At the participant level, the EUIC /22/ will be the lesser of (i) the net VaR decrease that may be deemed to be attributable to either cash substitutions and/or early unwind of interbank allocations or (ii) the prior EOD VaR minus the noon intraday VaR. /23/

   FOOTNOTE 22 The EUIC will be included in the noon intraday participant CFR, but not the same EOD CFR. This is because the risk associated with cash lockups exists at intraday, that is, at any time before at EOD. At EOD in the normal course of business, GCF Repo(R) positions consist of 100% eligible non-cash securities. GCF Repo(R) is used for overnight financing of securities inventory. Absent extraordinary circumstances, participants do not use cash to collateralized overnight cash loans. Cash substitutions occur at intraday as participants substitute in cash to withdraw securities they need for intraday deliveries. END FOOTNOTE

   FOOTNOTE 23 In the event that cash substitutions or early unwind of interbank allocations impacts the CFR, the prior end of day CFR is used as a proxy for the same end of day CFR for the portion of the portfolio that is impacted by such cash substitutions or early unwind of interbank allocations. The EUIC is designed to prevent the impact of cash substitutions and early unwind of interbank allocations from unduly reducing noon intraday CFR relative to the prior EOD CFR calculation, thus the EUIC will not increase the noon intraday CFR above the prior EOD CFR calculation. (But the noon intraday CFR calculation exclusive of EUIC could be higher than the prior EOD CFR calculation). END FOOTNOTE

   The EUIC for cash substitutions will apply to both the repo side (cash borrower) and the reverse repo side (cash lender) of the transaction and the EUIC for the early unwind of interbank allocations will apply to the reverse repo side only. As such, it should be noted that the reverse repo side is subject to the EUIC notwithstanding its inability to control the substitutions or the early unwind. The EUIC applies to the reverse repo side because although they do not initiate the cash substitutions or the early unwind of interbank allocations, these events change the reverse repo participants risk profile and as a result, their noon intraday CFR could be unduly reduced. GSD has discussed the EUIC with the participants that are likely to be materially impacted by this proposed charge. These participants did not express concerns about the EUIC. The EUIC for the early unwind of interbank allocations will only apply to the reverse repo side (cash lender) since it is only the reverse side whose lockup is unwound early. The securities subject to the early unwind are not returned to the repo side (cash borrower) in connection with the early unwind of interbank allocations. The early unwind of interbank allocations is performed on the reverse repo side to ensure that the underlying collateral is available to the repo side at its settlement bank. Cash is returned to the reverse repo side and thus unwound early.

   There is no automatic unwind (return of securities) to the repo side. If the repo side needs its securities before the 3:30 pm (ET) scheduled unwind, it may perform a securities-for-securities substitution or a cash-for-securities substitution (in which case it may be subject to the EUIC).

   Prior to implementation of the proposed changes (including the proposed EUIC), several steps were and/or will be taken to prepare for the changes and to prepare members for the changes. These steps include (1) internal review of the data available in the test environment, (2) FICCs parallel period, which began on January 13, 2014, and has covered over six months in order to give customers ample time to review the impact and consider changes to their portfolios, and (3) outreach to all GCF Repo(R) customers, plus additional outreach to give an overview of the proposed EUIC to those customers who are likely to be the most impacted by the EUIC.

   FICC believes it is important to incorporate the proposed changes in its risk management process as soon as possible because such changes will allow GSD to use more accurate position information in its margin calculations.

III. Date of Effectiveness of the Advance Notice and Timing for Commission Action

   The proposed change may be implemented if the Commission does not object to the proposed change within 60 days of the later of (i) the date that the proposed change was filed with the Commission or (ii) the date that any additional information requested by the Commission is received. The Clearing Agency shall not implement the proposed change if the Commission has any objection to the proposed change.

   The Commission may extend the period for review by an additional 60 days if the proposed change raises novel or complex issues, subject to the Commission providing the Clearing Agency with prompt written notice of the extension. A proposed change may be implemented in less than 60 days from the date the advance notice is filed, or the date further information requested by the Commission is received, if the Commission notifies the Clearing Agency in writing that it does not object to the proposed change and authorizes the Clearing Agency to implement the proposed change on an earlier date, subject to any conditions imposed by the Commission.

   The Clearing Agency shall post notice on its Web site of proposed changes that are implemented.

   The proposed change shall not take effect until all regulatory actions required with respect to the proposal are complete.

IV. Solicitation of Comments

   Interested persons are invited to submit written data, views and arguments concerning the foregoing. Comments may be submitted by any of the following methods:

Electronic Comments

    * Use the Commissions Internet comment form (; or

    * Send an email to [emailprotected]. Please include File Number SR-FICC-2014-801 on the subject line.

Paper Comments

    * Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549.

All submissions should refer to File Number SR-FICC-2014-801. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method of submission. The Commission will post all comments on the Commissions Internet Web site ( Copies of the submission, all subsequent amendments, all written statements with respect to the advance notice that are filed with the Commission, and all written communications relating to the advance notice between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 USC. 552, will be available for Web site viewing and printing in the Commissions Public Reference Room on official business days between the hours of 10:00 am and 3:00 pm Copies of the filing also will be available for inspection and copying at the principal office of FICC and on FICCs Web site at All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-FICC-2014-801 and should be submitted on or before October 14, 2014.

By the Commission.

Jill M. Peterson,

Assistant Secretary.

[FR Doc. 2014-22991 Filed 9-25-14; 8:45 am]


Comments off

Invictus hero is guest of honour at concert

Performing will be the Nottinghamshire band of the Royal Engineers, the Opera Dudes and Carlton Male Voice Choir.

Last years concert raised pound;4,300 for the Notts branch of the Armys official charity.

ABF The Soldiers Charity (which used to be called the Army Benevolent Fund) provides grants for education, business start-up, adaptations and care home fees for all Army personnel, serving or retired, and their family for life.

Also in the audience will be Bernie Broad, an Army major who lost both his legs in an explosion in Helmand Province.

Major Broad, the battle groups logistic officer at the time, was unconscious for nearly a month after the blast and underwent four years of extensive surgery plus two years assistance at the Personnel Recovery Unit at Chetwynd Barracks in Chilwell.

The 48-year-old, who lives in Derbyshire, now helps to support ABF The Soldiers Charity when hes not playing golf.

What I like about this charity is that anything that comes in, all of it is going out to the cause. Its not just soldiers from Afghanistan but all the way back to World War Two and their families.

Last year the charity awarded 54 grants in Notts, totalling more than pound;33,700.

These included a pound;660 award to a 30-year-old former Grenadier Guardsman towards essential household goods.

The man, who has struggled with post traumatic stress disorder since leaving the Army, is trying to rebuild his life and find a job.

Half of the charitys money is given to individuals to help with debt, mobility, education, respite breaks and care home fees and the rest is given as grants to other charities.

Tim Harrison, who has helped to organise the concert, said: We are highly honoured to welcome Derek Derenalagi to the Concert for Courage.

Hes proved that its possible, despite severe injuries and disability, to achieve success at the highest level.

Were sure that hell go on to even greater success and encourage many other disabled people to achieve, whatever their goals.

Tickets, costing pound;15, are available from the Royal Centre box office, www.trch or telephone 0115 9895555.

Comments off

« Previous entries