Risk: Eurex and LCH face headwinds from bilateral market comeback

Risk: Eurex and LCH face headwinds from bilateral market comeback

Buy-side firms are icing repo clearing plans as spreads tighten, and the resurgent bilateral market is resulting in headwinds for services at Eurex and LCH.

In 2017, a regulatory-driven year-end balance sheet clampdown from dealers in the bilateral market meant liquidity was scarce, and prices soared. For the first time, the buy-side started to take the idea of clearing their trades seriously.

A year later, things have completely turned around. Users say spreads on bilateral UK government bond repo are 12 basis points tighter, after a progressive decline.

Read the full article

Related Posts

Previous Post
Networked collateral ecosystems will strengthen in 2018
Next Post
ISLA reports wins on German tax act

Related Posts

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

Menu
X

Reset Password

Create an Account