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Economic Policy Review
The financial plumbing of the GCF Repo® Service
The authors describe the ways that intraday credit was used to facilitate the settlement of trades before reforms to the tri-party repo settlement system. In particular, they focus on two main processes: the end-of-day settlement and the morning unwind. The authors then describe why this extension of intraday credit by the clearing banks is problematic, specifically pointing to concerns that a clearing bank may not be able to absorb the impact of a failing dealer. The authors also discuss various reforms to the tri-party repo settlement process, which, they note, are likely to influence the costs of settling GCF Repo transactions.
Cite this item
Paul Agueci & Leyla Alkan & Adam Copeland & Kate Pingitore & Caroline Prugar & Tyisha Rivas, "The financial plumbing of the GCF Repo® Service"
, Federal Reserve Bank of New York, Economic Policy Review, issue 2, pages 7-24, 2015.
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
Keywords: GCF Repo; tri-party repo reforms; financial intermediation
This item with handle RePEc:fip:fednep:00025
is also listed on EconPapers
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