Totem extends pricing data to 10-year repos

IHS Markit service set to help banks with funding and swaps valuation concerns

There are hopes that longer-term indicative prices could lead to greater accuracy on longer-dated transactions

IHS Markit’s Totem benchmarking service is providing indicative prices for government bond repos out to 10 years – far beyond what is considered liquid – in response to growing regulatory pressure on banks’ longer-term funding requirements and the need for more accurate valuation of swaps collateralised with bonds.

“It gives more transparency on the marking and you end up having an accurate valuation of your collateral, and that feeds the whole chain. It doesn’t just impact the desk managing