Can rising concern about repo markets be effectively addressed?

Published on 9 December 2022

The International Capital Markets Association (ICMA) has raised serious concerns with the European Central Bank (ECB) about sound functioning of the market for repurchase agreements (repo), a cornerstone of market liquidity, mirroring concerns in the US.

As year end nears, when banks typically position to reduce risk on their books further impacting liquidity, the potential for a problem to occur is critical.

For dealers, connecting their liquidity flows between D2D and D2C, improving analytics and digitalising manual workflows to reduce any operational friction can allow them to support clients – and manage risk – much more efficiently. Luigi Marino of valantic FSA and Andy Wiblin of GLMX talk us through the problem and some practical solutions.