Fed support high on wish list for buy-side repo clearing

Risk USA panellists want liquidity support for planned new services

Federal Reserve
Liquidity, please: Fed support a 'great idea' for repo clearers

As clearing houses draw up plans to expand their repo services to the buy side, the one selling point some firms want to see is one that may not be available: emergency backing from the Federal Reserve.

The Dodd-Frank Act bars the central bank from bailing out a stricken company, and insists any emergency lending be done for the benefit of the financial system. It's not completely clear whether liquidity support for a central counterparty (CCP) would be possible within these confines or not, but

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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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