There seems to be an idea that the Fed should only conduct repo operations with its preferred counterparties using its own operational facilities. This is commingled with the sense that the Fed is above the fray of the market somehow. We’re not convinced that either of these ideas should be accepted as fact. The Swiss National Bank’s (SNB) repo market engagement on SIX offers a different sort of example for how a central bank can set monetary policy using a private market utility.
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