Banks Say Upgrade Repo Clearing, Don't Centralize It

Kite, Shane
July 2009
Securities Industry News;7/6/2009, Vol. 21 Issue 15, p1
Trade Publication
The article reports that U.S. bank executives prefer the voluntary adoption of tougher margin requirements in the repurchase or "repo" market over a central clearing utility for the short-term financing industry, as proposed by regulators. The U.S. Federal Reserve has reportedly been studying ways to strengthen the overnight financing industry and considered a central clearing for repos that would replace use of Bank of New York Mellon and J. P. Morgan Chase. In return for more collateral, the banks want more guarantee for their credit agreements.


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