Repo Markets
Two good pieces from the FT.
Fed plans repo markets revamp
The US Federal Reserve is considering dramatic changes to the giant repurchase – or repo – markets where banks around the world raise overnight dollar loans.
The plans include creating a utility to replace the Wall Street banks that handle transactions, people familiar with the matter say.
Push to reduce risks in short-term funding
The demise of leading US investment banks last year focused regulatory attention on a crucial area of financial plumbing and sparked a debate about the future of the repurchase – or repo – market.