Market warns BoE against blanket mandatory gilt repo clearing

Official says proposals receiving push-back on one-size-fits-all approach and limited netting benefits

Market participants have warned the Bank of England against a blanket mandatory clearing regime for gilt repo, arguing that a sweeping approach could raise costs and also fail to deliver the netting benefits seen in other jurisdictions.

The BoE floated the idea in a September discussion paper on reforms to the UK’s gilt repo market, which suggested mandatory clearing for gilt repo trades alongside