On December 12, 2019, Fed in Print will introduce its new platform for discovering content. Please direct your questions to Anna Oates

Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of New York
Economic Policy Review
The financial plumbing of the GCF Repo® Service
Paul Agueci
Leyla Alkan
Adam Copeland
Kate Pingitore
Caroline Prugar
Tyisha Rivas
Abstract

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.


Download Full text
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.
More from this series
JEL Classification:
Subject headings:
Keywords: GCF Repo; tri-party repo reforms; financial intermediation
For corrections, contact Amy Farber ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal