Fed’s plan to end ‘window dressing’ stirs repo debate

Change to G-Sib surcharge could smooth year-end volatility, but some fear liquidity will worsen


A proposed change to the way the US Federal Reserve calculates the capital surcharge for global systemically important banks (G-Sibs) could have profound implications for the repo and derivatives markets.

Banks typically scale back balance sheet-intensive activities such as derivatives and repo trading ahead of deadlines for reporting regulatory metrics that are used to calculate capital add-ons. The practice, known as ‘window dressing’, has contributed to sharp reductions in dealer capacity at

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here