Grim repo: clearing touted as saviour for shrinking market

CCPs wary of risks as they vie to launch buy-side repo services

Grim shrinkage: repo market has contracted by 'up to 60%' in the US

The repo market is ill. Once the leverage ratio takes effect in 2018, banks operating matched books of borrowed and lent cash will be prevented from fully netting trades, and will be charged capital on a proportion of the total notional. The prospect has already caused the market to shrink by up to 60% in the US, according to one estimate.

There is an obvious cure: a comprehensive clearing solution that allows buy-side firms to join the incumbent banks, dramatically expanding their ability to

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Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

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