How would you like your repo market? Shallower but consistent, or deeper but uneven?
The UK and US decided some time ago that they prefer to know their banks are well capitalised on average every working day of the year, rather than just four days a year on quarterly reporting dates. But European Union policymakers have historically fretted that any toughening of capital ratios would lead to lower liquidity and higher trading costs all year round.
The downside of the EU alternative, as Risk