Article ID: f68aec0d5e653ef8c41e56cc1f30c8aca8d7db9224050a5f8ff4cbd0560d286b
Source ID: regulatory:risk.net
Published At: -
Extraction Method: trafilatura
URL: https://www.risk.net/topics/repo
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Repo CME aims to offer client UST cross-margining internally in 2027 CCP has filed initial proposal with SEC; wants to offer more products than joint FICC programme Report once: will Esma’s €1bn reforms deliver the full picture? Critics say plan to merge three reporting regimes will see scant returns, and won’t mesh with single-sided reporting BoE backs away from mandatory gilt clearing Discussions with industry shift to portfolio-based repo haircuts and ways to encourage voluntary clearing Repo tokens won’t be cleared. Or will they? Uncertainty lingers over clearing status of tokenised Treasuries, with decision likely devolved to DTCC Rapid-fire repo raises hopes of cheaper, faster trading Tokenised Treasuries piloted by DTCC could squash settlement cycles and enable 24/7 repo Chain reaction: can the UK drive demand for digital gilts? Market will need regulatory clarity, fungibility with traditional issuance and interoperable protocols FICC-cleared MMF reverse repos hit record high in June Non-Fed reverse repos exceed $3 trillion for the first time Basis trade loses its bite as banks move in Returns on popular hedge fund strategy dwindle to as little as three basis points, while dealers make use of softened capital rules to replicate the trade CCP liquid resources pivot to secured commercial bank cash Eurex, CME and ECC drive jump in reverse repo-linked liquidity buffers in Q1 Affiliate repo accounts for sixth of US market – OFR brief Internal trades carry significantly lower haircuts than non-affiliate repos We won’t copy UST clearing mandate wholesale in UK – BoE Senior official also indicates that any minimum repo haircuts will likely be calculated at portfolio level Treasury basis trade loses its allure as returns shrink Tight spreads and rising funding costs are pushing the cash-futures basis trade out of favour Clearers face heavy lift on CME-FICC cross-margin service Dual registration and regulation plus uncertainty over close-outs all weigh on client offering Megabanks boost repo exposures after SLR reform Volumes of repo-style transactions at US systemic banks top $2.5trn, helping drive record-low SLRs in Q1 Treasury mulls investing cash in repo. Experts aren’t convinced. Putting idle cash to work would earn paltry returns and perhaps depress private lending activity, say sceptics MMF repo with US financials hits high in April Volumes approach $1trn, with US financials’ repo activity overtaking non-US for first time Un-American or un-JPM? Surcharge rethink divides G-Sibs Some see sense in rethink to funding indicator, others call for a backtrack Bank of England softens tone on CCP cross-product margining Breeden supports margin efficiencies to encourage more repo clearing, but still warns on leverage G-Sibs face daily data headache from US surcharge proposal Move to more frequent measurement would be “massively burdensome”, says senior exec Banks fear US cross-product capital relief will fall short Proposal to treat repo as futures for SA-CCR may not do enough to support UST clearing mandate JP Morgan repo reliance hits 15-year high after Q1 surge Fed funds and repo liabilities climb 62% to $717 billion
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