IFR: Funding ratio rule sparks repo clearing call

The US$1.6trn per day repo market is facing calls that it be moved into a centrally cleared framework as soon as possible as new Basel Committee rules threaten to further crimp a business already under severe constraints.

Net Stable Funding Ratio rules, finalised at the end of October, aim to reduce bank reliance on short-term funding by requiring that systemically important banking institutions hold longer-term stable funding against shorter-term assets, especially those with maturities under one year.

The full article is available here.

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