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

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: