Munic, Yio Chu Kang (2025)

30/05/2024

Overview of Non-Financial Regulatory Reporting (NFRR)

Non-Financial Regulatory Reporting (NFRR), as the name suggests, refers to the non-financial reports that are required to be submitted by firms to the regulator or published for certain stakeholder groups. There are two key aspects – 1) non-financial; and 2) Regulatory reporting. The word ‘non-financial’ here refers to all reports which are not financial in nature. Usually, they originate outside of the finance function of a firm and include reports such as compliance reports, transactional reports and other reports which do not contain financial data. It is possible that the reports can originate from the financial department but yet it might be of non-financial nature. So, the origination of the report is not important, what is important is that the report is non-financial in nature and/or is classified by the regulators as non-financial. The second aspect “regulatory reporting” means that these are mandated by the regulator(s). There can be many reports that a firm publishes but under NFRR we are only concerned with those reports that are mandated to be reported. In most cases, reporting means sending a report to the regulator but certain reports need not be sent to the regulator, they are required to be published for public or specific stakeholder group consumption purposes.

Non-Financial Regulatory Reporting (NFRR), as the name suggests, refers to the non-financial reports that are required to be submitted by firms to the regulator or published for certain stakeholder groups. There are two key aspects – 1) non-financial; and 2) Regulatory reporting. The word ‘non-f...

12/05/2024

Understanding Client Categories: The FCA's Classification System Demystified

The Financial Conduct Authority (FCA) has divided clients into the following three categories.

Retail client (RC)
Professional client (PC)
Eligible counterparty (ECP)

The Financial Conduct Authority (FCA) has divided clients into the following three categories. Retail client (RC) Professional client (PC) Eligible counterparty (ECP) This categorization must be used by financial firms while conducting, or intending to conduct, regulated business with or for a clien...

12/05/2024

Order ex*****on under MiFID II. Tap to know more!

Best ex*****on and order handling
MiFID and UK MiFID II require that investment firms must establish and implement effective arrangements for complying with the obligations to take all sufficient steps to obtain the best possible results for their clients when executing client orders or routing or placing client orders to other entities, including the firm’s affiliates or other third-party brokers, or when executing in response to a client RFQ where there is a legitimate reliance.

European regulation

12/05/2024

Inducements under MiFID. Tap to know more!

European regulation

12/05/2024

What are the Financial instruments covered under MiFID? Want to know more?

Markets in Financial Instruments Directive

08/05/2024

Unlocking the Essentials: Exploring Documents Used in International Trade

Documents used in international trade can be broadly classified into the following five types.

Financial documents
Commercial documents
Transport documents
Risk covering documents
Regulatory documents

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The term “document” has been defined in the ICC Uniform Rules for Collections as follows. Document means financial documents and/or commercial documents. Financial documents means bills of exchange, promissory notes, cheques, payment receipts or other similar instruments used for obtaining the p...

08/05/2024

Navigating Active Zones and Dead Zones in FX Trading: Maximizing Opportunities and Minimizing Risks

Active Zones
Active zones are periods when the market experiences heighted trading activity.

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Forex market is a 24/7 market. However, it is not liquid all through the trading day; there are high activity periods and low activity periods, and these are called as trading zones – active trading zone and dead zone. Active Zones Active zones are periods when the market experiences heighted trad...

08/05/2024

SWIFT: Understanding the Backbone of Global Financial Transactions

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication.

It is a global provider of secure financial messaging services founded in 1973 to replace telex. It is a member-owned cooperative connecting more than 11,000 banks, financial institutions and corporations in more than 200 countries and territories.

SWIFT operates internationally with 26 offices located across the world and is headquartered in Belgium. As a strategic international financial messaging service provider to the financial industry, SWIFT is overseen by the G-10 central banks, with support from central banks of other countries as well.

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SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is a global provider of secure financial messaging services founded in 1973 to replace telex. It is a member-owned cooperative connecting more than 11,000 banks, financial institutions and corporations in more than 200....

03/05/2024

nlocking the Potential: Exploring US Savings Bonds with Munic

The US Treasury Savings Bonds are a type of loan issued by the U.S. Department of Treasury to individual investors. They are low-risk, interest bearing securities that retail individuals can purchase directly from the government through the treasury department (Treasury Direct’s website). Savings bonds are safe investments guaranteed by the US government.
The government uses the money raised through these bonds for building and maintaining roads, schools, support veterans and for other public services, including to fund the space program. When the government’s expenditure is more than its revenue, it results in a deficit. To fund the deficit, it borrows money in various forms and one of the form is the Savings Bond.

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https://munic.substack.com/p/us-savings-bond

The US Treasury Savings Bonds are a type of loan issued by the U.S. Department of Treasury to individual investors. They are low-risk, interest bearing securities that retail individuals can purchase directly from the government through the treasury department (Treasury Direct’s website). Savings ...

01/05/2024

Wealth management - part 3

Various products are used for providing wealth management services. The following is a brief list of those.

Equities

Fixed Income Securities or Bonds

Mutual Funds

Commodity Trading

Foreign Exchange Trading

Precious Metals

Private Equity and Venture Capital Investments

Real-Estate Investments

Visit our blog to know in detail about each of the products.

Various products are used for providing wealth management services. The following is a brief list of those. Equities Fixed Income Securities or Bonds Mutual Funds Commodity Trading Foreign Exchange Trading Precious Metals Private Equity and Venture Capital Investments

01/05/2024

Continuing the Journey: Wealth Management Part 2 Unveiled

The following is a broad categorization of wealth management services being offered by various firms.

Property or Estate Services

Investment Services

Tax Services

Consulting Services

To learn more about Wealth Management, pls click on below link.

The following is a broad categorization of wealth management services being offered by various firms. Property or Estate Services Investment Services Tax Services Consulting Services Property and estate services Property or estate is acquired by wealthy individuals for various purposes. Property is....

01/05/2024

Demystifying Repo Documentation: Understanding the Essential Paperwork

The performance of repo depends on the buyer’s right to collateral. In order to minimize legal risks, it is prudent to have a written contract in the form of a master agreement. The standard for cross-border repo markets in Europe and elsewhere is the Global Master Repurchase Agreement (GMRA).

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The performance of repo depends on the buyer’s right to collateral. In order to minimize legal risks, it is prudent to have a written contract in the form of a master agreement. The standard for cross-border repo markets in Europe and elsewhere is the Global Master Repurchase Agreement (GMRA). Suc...

01/05/2024

Decoding Repo Terminology: Navigating the Language of the Repo Market

‘Repo’ is the generic term for two equivalent instruments:

repurchase agreements (also known as ‘classic repos’)

buy/sell-backs.

Repurchase agreements and buy/sell-backs share the same basic legal and operational mechanisms (i.e. a sale of assets and a commitment by the seller to repurchase those assets from the buyer at a later date).

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‘Repo’ is the generic term for two equivalent instruments: repurchase agreements (also known as ‘classic repos’) buy/sell-backs. Repurchase agreements and buy/sell-backs share the same basic legal and operational mechanisms (i.e. a sale of assets and a commitment by the seller to repurchase ...

30/04/2024

Unlocking the Repo Market: Understanding its Size and Significance in Finance

The global repo market is about $18 trillion in terms of outstanding size, and the daily turnover is about $6 trillion.
Repo markets exist in both developed and emerging markets.

In China and Japan, the structure of the repo is different from other markets as their repos does not deal with transfer of title. Instead, they deal with security interest, just like secured loans.

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The global repo market is about $18 trillion in terms of outstanding size, and the daily turnover is about $6 trillion. Repo markets exist in both developed and emerging markets. The following is a list of countries with large repo markets.

30/04/2024

Exploring Systematic Internalisers: Shedding Light on Market Liquidity Dynamics in the latest Munic blog post.

Introduced by MiFID in 2007, Systematic Internalisers (SI) are large institutions large enough to match client orders internally, or against their own books (unlike broker crossing network, which may route orders between a number of institutions). They are defined in MiFID as an investment firm which “on an organized, frequent, systematic and substantial basis, deals on own account by executing client orders outside a regulated market, a MTF or an OTF, without operating a multilateral trading system”.

To know more about SI, pls click on below link.

Introduced by MiFID in 2007, Systematic Internalisers (SI) are large institutions large enough to match client orders internally, or against their own books (unlike broker crossing network, which may route orders between a number of institutions). They are defined in MiFID as an investment firm whic...

30/04/2024

How to measure the size of OTC derivatives market?

It is common to report the volumes in the OTC derivatives market in terms of outstanding notional amount. The OTC derivatives market notional outstanding at the end of June 2023 was $715 trillion (which is about 7 times the world GDP). Looking from this perspective, it is a huge number. However, volume in terms of notional amount is neither a good indicator of the market condition nor the risk in the financial sector. For example, let’s consider that I took a long position in an interest rate swap on 15th April 2024 for USD 100 million notional at a price of “x”.

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It is common to report the volumes in the OTC derivatives market in terms of outstanding notional amount. The OTC derivatives market notional outstanding at the end of June 2023 was $715 trillion (which is about 7 times the world GDP). Looking from this perspective, it is a huge number. However, vol...

28/04/2024

The Basel Committee was created in the wake of international financial market turmoil caused by the 1970 exchange rate crisis. After the collapse of Bretton Woods in 1973, many banks incurred large foreign currency losses. In response to these and other disruptions in the international financial markets, the central bank governors of the G-10 countries established a Committee on Banking Regulations and Supervisory Practices (later renamed as the Basel Committee on Banking Supervision, or BCBS) at the end of 1974 to facilitate regular cooperation between its member countries on banking supervisory matters and to enhance financial stability.

To know more about Basel committee history, pls click on below link.

The Basel Committee was created in the wake of international financial market turmoil caused by the 1970 exchange rate crisis. After the collapse of Bretton Woods in 1973, many banks incurred large foreign currency losses. In response to these and other disruptions in the international financial mar...

26/04/2024

Diving into the World Uncertainty Index: Understanding Global Economic Volatility.

We have quite a few indexes and tools to measure the uncertainty of markets and economies; the World Uncertainty Index (WUI) is one of the relatively new measures that tracks uncertainty across the world. This is created by the IMF for analysis purposes. It is currently available for 143 countries.

We have quite a few indexes and tools to measure the uncertainty of markets and economies; the World Uncertainty Index (WUI) is one of the relatively new measures that tracks uncertainty across the world. This is created by the IMF for analysis purposes. It is currently available for 143 countries.

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