Fixing the repo market while the sun is shining

The repo markets are a marked cause for concern amongst market participants, regulators and central banks today. They offer a route for generating returns on assets, sourcing collateral and providing short-term liquidity, however, recent disruptions have raised the levels of concern around liquidity shortfalls and price spikes, creating a structural challenge for market participants on the buy- and sell-side.

Oliver Clark, global head of product at MTS and Tim Martins, product manager for repo and money markets at MTS, see electronic trade execution as a route to a marked improvement in price and liquidity discovery, but they warn that buy-side firms should adopt these new trading protocols ahead of the next event to avoid unnecessary risk.

Published on December 18, 2019

Share this Article


Leave a Reply

Your email address will not be published. Required fields are marked *