Discussion Paper

Proportionate margining for repo transactions


Abstract: The repurchase agreement (repo) market plays a central role in funding and leveraging securities positions, and sourcing securities. Traders in the repo market protect themselves from the default of their counterparties through margin collected via haircuts on repo transactions.

https://doi.org/10.17016/2380-7172.3722

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2025-02-14

Number: 2025-02-14-1