The FT, the Fed and the FRRP

An article in the FT on 21 March reported that “The Federal Reserve has assumed a much bigger role in a key funding market that had long been a prime component of the unregulated shadow banking system, reflecting central bank concerns that it poses a systemic risk”. The market, identified only as the repo market,…

Revisions to the Basel Leverage Ratio — a correction

The previous version of this blog questioned why, when the Basel Committee on Banking Supervision issued a revision to the Leverage Ratio in January 2014, it had not allowed the netting of collateral in matched positions with the same counterparty. There is a good reason for this and, I am afraid, the previous blog got…

How good a picture can Euro GC Pooling provide of the interbank euro GC repo market?

An interesting academic paper has recently suggested that Eurex Repo’s Euro GC Pooling (EGCP) system ‘allows us to comprehensively investigate the bilateral CCP-based part of the interbank segment of the euro GC repo market’ and makes it possible to ‘accurately document and analyse developments in the bilateral CCP-based interbank repo market’.[1] This is of topical…