ASIFMA and ICMA Asian repo survey finds Japanese business outstanding at US$202.9 bn, non-Japan Asia outstanding at US$260.1 bn

ICMA’s European Repo and Collateral Council (ERCC) and ASIFMA have published the results of the latest survey of the Asia-Pacific repo market. Using similar methodology to the established ICMA ERCC European repo market survey, the latest Asia-Pacific survey reports the outstanding value of repos and reverse repo on June 9, 2021, and a detailed breakdown of those positions.

The report splits the Asian survey into two parallel surveys, one for trading repo in Japan and the other for rest of the APAC region. The focus of the business surveyed is cross-border transactions by global and regional banks, rather than domestic activity. The ASIFMA/ICMA survey is the only source of data on this business.

The Japan survey reported an outstanding value of repos and reverse repos for the survey sample on June 9, 2021, of USD 202.9 billion, compared with USD 215.7 billion last year. Average daily turnover over the year to 9 June was almost USD 33 billion, with an average deal size of about USD 63 million.

The non-Japan Asia survey reported USD 260.1 billion in outstanding value and an average daily turnover of USD 29 billion, compared with USD 216.7 billion and almost USD 37 billion per day in 2020. Average deal size was some USD 56 million, compared with USD 76 million in the last survey.

“The annual ASIFMA/ICMA repo survey is a unique source of information on the state of the cross- border repo markets of Asia-Pacific” said ICMA Chief Executive Bryan Pascoe, “It continues to  inform our work with members and the authorities in the region on developing this important funding market”.

“The ASIFMA/ICMA survey shows the growing importance of Repo across the region and the dynamics of its structure and stakeholders,” added Philippe Dirckx, Managing Director and Head of Fixed Income at ASIFMA.  “It is also encouraging to see the regulatory changes supporting its development aligned with our members’ expectations and requirements. There nevertheless remain impediments limiting cross-border repo to fully leverage the liquidity of the on-shore market. This is one of the key areas of focus when we engage with the relevant regulators and market infrastructures.”

Download the ICMA ASIFMA Asia-Pacific repo market survey here.