Repurchase Agreements (Repos)

Subscribe to Repurchase Agreements (Repos)

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 Expanded MMF Eligibility Criteria for FRBNY Repo Progam

July 2016 was a busy month for repo-related news, particularly related to repo clearing. The following is a summary of some of the more significant repo related items that occurred over the past couple of weeks.  This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.
Continue Reading Last Month in Repo – July 2016

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 “non-exhaustive” list of potential forms includes: “outright prohibition, minimum margining requirements and practices, capital requirements, and taxation.” 
Continue Reading Federal Reserve Board Governor Tarullo Suggests “Outright Prohibition” as Possibility for “Shadow Banking” Regulation

The Federal Reserve Bank of New York (FRBNY) released their monthly statistics of the U.S. tri-party repo market for April 2016.

As of April 11, 2016, the total collateral in the U.S. tri-party repo market decreased by $81.97 billion to approximately $1.517 trillion.  The majority of the decrease was in U.S. Treasuries excluding Strips collateral value, which decreased by $66 billion to $656.32 billion.  U.S. Agency Mortgage-Backed Securities decreased by nearly $82 million to $419.54 billion.  Equities collateral reversed the previous-month’s increase, dropping $5 billion to a 12-month low of $113.5 billion.
Continue Reading Tri-Party Repo Data: April 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 billion.  U.S. Agency Mortgage-Backed Securities increased by $31.91 billion to $441.35 billion.  Equities collateral decreased by nearly $24 billion to $113.66 billion.  Corporates Investment Grade collateral increased by $2.44 billion to $46.93 billion.
Continue Reading Tri-Party Repo Data: February & March 2016