Take care with repo market, ECB's Bindseil urges

Banks claim new rules will force repo business into hands of hedge funds

European Central Bank at night

Regulators and policy-makers should try to avoid unintended damage to the repo market from new rules such as the leverage ratio and net stable funding ratio (NSFR), according to a European Central Bank (ECB) official, speaking at a conference in Berlin today. Ulrich Bindseil, director-general within the ECB's general market operations unit, was responding to warnings from fellow panellists that repo would end up migrating to the shadow banking industry.

"We cannot conclude that regulation can be

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