Key Mechanics of the U.S. Tri-Party Repo Market

October 22, 2012 by Bill Hodgson 2 Comments

This is gold if you need to understand the flow of bonds in the US Repo and especially the TriParty Repo market.

Key Mechanics of the U.S. Tri-Party Repo Market.

NY Fed, Research

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2 Responses to “Key Mechanics of the U.S. Tri-Party Repo Market”

  1. Jon Skinner October 22, 2012 at 18:24

    The systemic risk of having this system based largely on two banks (BNY and JMPC) is also an issue.

    Perhaps instead of triparty with its cumbersome allocation process / timing issues, it would be lower systemic risk and more efficient to substitute CCP clearing and take away the need for the triparty provider? In outline, this would require automated capture of each CUSIP as an individual repo directly by both end-lender and end-borrower and automated clearing of those transactions via a CCP?

  2. Bill Hodgson October 22, 2012 at 18:37

    Much like RepoClear?

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