Bloomberg: EU to focus on repo and rehypothecation

EU Said to Weigh Curbs on Collateral Asset Reuse in Repos

Banks and brokers may face European Union curbs on the number of times a single asset can be passed on as collateral in repurchase agreements and other secured trades, according to a person familiar with the plans.

The EU is weighing whether it should limit the length of transaction chains in which traders who receive collateral in turn use the same securities to back separate trades, according to the person, who asked not to be named because the proposals aren’t public. It is also planning measures to make the chains easier to monitor by regulators.

The full article is here.

Related Posts

Previous Post
ConvergEx Group Expands Institutional Clearing Business
Next Post
Is the EU really thinking about restricting collateral chains? Boy, we hope not….

Fill out this field
Fill out this field
Please enter a valid email address.

X

Reset password

Create an account