US Treasury’s leverage fix tipped to boost repo market

US Treasury plan to exempt US government bond exposures expected to help struggling market

US Treasury
Proposed Treasury changes could have knock-on effect on the RRP programme

The US repo market could receive a liquidity boost if recommendations made in a US Department of the Treasury report are adopted by prudential regulators, say market participants. But the move would also undermine new clearing services that aim to shore up the market, and would see the US depart from internationally agreed standards.  

Outlined in its first report to President Trump on remodelling financial regulation, published on June 12, the US Treasury suggested removing certain instruments

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