A dispute over technology could pose a new threat to Wall Street’s plumbing by severing a link that allows big banks to borrow freely from one another, according to market participants.
A unit of Depository Trust & Clearing Corp., the dominant processor of repurchase agreements, or repos, between securities dealers, has told traders it will stop facilitating certain interbank repos as of July 15. The roadblock affects an estimated $45 billion in daily repo loans, short-term loans through which banks and other financial firms exchange cash and securities to raise funds for their trading activities.
The full article is available at http://www.nasdaq.com/article/the-new-threat-to-banktobank-lending-20160131-00032#ixzz3ywDJvMpS
