The US Federal Reserves open market committee has established two standing repo facilities to support the effective implementation of monetary policy and smooth market functioning
The firm also says 57 matching counterparts are now using its post-trade repo solution, with additional firms also in the pipeline, pending go-live in Q3 and Q4 of 2021
This is the first step in the transformation of the repo markets using smart contracts and distributed ledger technology, says Broadridge president of capital markets Vijay Mayadas
The firm unlocks access to global and local interbank markets for emerging markets and developing countries banks by providing credit guarantees to cover counterparty credit risk, utilising local currency assets as collateral
Panellists at the SFT Technology Symposium hailed newly-invigorated tailwinds for technology adoption in repo markets, although there is still significant headroom for growth
The sponsored cleared repo sector has climbed from approximately $30 billion in daily volume in early 2017 to a peak of over $525 billion in March 2019, with daily volumes in recent months consistently above $200 billion