The story behind a boom in repo e-trading

The increasing frequency of liquidity problems in repo markets – very obvious in the March 2020 sell-off – have been exacerbated by a low adoption of electronic trading and regulatory limits on bank balance sheets. However, over the past year e-trading of repo has boomed, says Erica Barrett, managing director of institutional rates at Tradeweb.

As buy- and sell-side firms have adopted e-trading market operators are forming hubs that bring multiple liquidity providers together, despite the challenges of hooking up the unique workflows that trading desks often use.

Published on February 17, 2021

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