Category: Repurchase Agreements (Repos)

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Bankruptcy Court Affirms Auction Process Used Following Repo Counterparty Insolvency

In a remaining vestige of the financial crisis, the U.S. Bankruptcy Court for the District of Delaware (“Court”) recently issued an opinion upholding a repo counterparty’s sale of collateral following the insolvency of the counterparty to the repo. The Chapter 7 Trustee for the insolvent counterparty had challenged the sale on the basis that the … Continue Reading

Tri-Party Repo Data: March 2017

The Federal Reserve Bank of New York (FRBNY) released their monthly statistics of the U.S. tri-party repo market for March 2017. Beginning with the March 2017 data, the FRBNY will no longer publish the PDF and excel files containing single month statistics to which we ordinarily provide a hyperlink. Instead, tri-party repo statistics will only … Continue Reading

Defending Bankruptcy Exemptions for Repos and Sec Lending

One great thing about a new Congress is that bills pending at the end of the prior Congress must be reintroduced. This wipes the slate clean of problematic proposals and reduces the risk of something slipping through without sufficient debate. For example, the proposed Bankruptcy Fairness Act of 2016 (BFA) expired with the 114th Congress. … Continue Reading

More on Proposed Repo Benchmark Rates

In a previous post we summarized the FRBNY’s announcement that it was considering publishing three benchmark repo rates.  Recently the Liberty Street Economics blog (available on the FRBNY’s website) explored the goals of the proposed benchmarks as well as how each benchmark would have performed over the period from August 2014 to October 2016. Highlights … Continue Reading

Expanded MMF Eligibility Criteria for FRBNY Repo Progam

Effective September 2, 2016, the Federal Reserve Bank of New York (FRBNY) revised the reverse repurchase transaction (RRP) counterparty eligibility criteria with respect to money market funds (MMFs).  The revisions expand the set of potential RRP counterparties.  The FRBNY expects the number of RRP counterparties to be 150 as a result of the revisions.… Continue Reading

Federal Reserve Board Governor Tarullo Suggests “Outright Prohibition” as Possibility for “Shadow Banking” Regulation

In a speech delivered on July 12, 2016 to the Center for American Progress and Americans for Financial Reform Conference, Governor Daniel K. Tarullo discussed potential new approaches for the regulation of shadow banking (which he in part describes as “runnable funding”).  Specifically, in asking what form such regulation may take, Governor Tarullo indicated that a … Continue Reading

Tri-Party Repo Data: February & March 2016

The Federal Reserve Bank of New York released their monthly statistics of the U.S. tri-party repo market for February and March 2016. As of February 9, 2016, the total collateral in the U.S. tri-party repo market increased by nearly $7.1 billion to $1.585 trillion.  U.S. Treasuries excluding Strips collateral value decreased $9.7 billion to $689.72 … Continue Reading

Tri-Party Repo Data: January 2016

The Federal Reserve Bank of New York released their monthly statistics of the U.S. tri-party repo market for January 2016. As of January 12, 2016, the total collateral in the U.S. tri-party repo market decreased by approximately $14 billion to $1.578 trillion. U.S. Treasuries excluding strips collateral value increased nearly $45 billion to $699.43 billion. … Continue Reading

Member of Federal Reserve Board Speaks on Central Clearing for Repo

In a speech delivered on November  17, 2015 to The Clearing House Annual Conference, Board of Governors member, Jerome H. Powell discussed the merits of central clearing for repo.  Citing the “several private initiatives for greater central clearing” in the repo market Governor Powell indicated that “repo clearing could potentially bring a range of benefits, including … Continue Reading

Tri-Party Repo Data: December

The Federal Reserve Bank of New York released their monthly statistics of the U.S. tri-party repo market for December 2015. As of December 9, 2015, the total collateral in the U.S. tri-party repo market decreased by approximately $23 billion to $1.593 trillion.  U.S. Treasuries excluding strips collateral value decreased for the second straight month, moving … Continue Reading

Tri-Party Repo Data: November

The Federal Reserve Bank of New York released their monthly statistics of the U.S. tri-party repo market for November 2015. As of November 10, 2015, the total collateral in the U.S. tri-party repo market decreased by approximately $19 billion to $1.616 trillion.  After increasing by nearly $100 billion during the last two months, U.S. Treasuries … Continue Reading

Margin on Non-Cleared Swaps – Are Money Market Funds Eligible Collateral?

On October 22, 2015, the prudential banking regulators (which includes the OCC, FDIC and the Federal Reserve Board) approved the final version of the non-cleared swap margin rule (available here). We will be considering many aspects of this rule in a series of postings, but in this posting we focus on a single discrete issue: … Continue Reading

Tri-Party Repo Data: FRBNY Develops Interactive Tool

The Federal Reserve Bank of New York (FRBNY) recently developed and made available to the public an interactive tri-party repo market data tool.  The tool is designed to complement the monthly tri-party repo market statistics that the FRBNY releases each month, allowing users to view the data graphically.  Specifically, the tool allows users to analyze … Continue Reading
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