Banks pushing Eurex to allow hedge funds into cleared repo

Prime brokers proposing to guarantee the performance of clients’ trades


Banks are proposing plans to Eurex that would enable hedge funds to borrow in the cleared repo market – a step that might improve funds' access to a critical but increasingly strained source of funding.

Two banks spoke to have put forward plans to act as clearing agents for hedge funds under the central counterparty's (CCP) new model for buy-side membership, and are offering to go a step further by also guaranteeing the performance of the funds' repo trades.

As well as covering the hedg