The broken mechanics of the repo market have been exposed, creating demand for change
7 April 2017 The Desk
Repo provides for smooth functioning of ALL financial markets. It allows for the safe transmission of cash and collateral from buyer to seller. As a result, it lowers the cost of issuance, thereby supporting the real economy. Furthermore, it supports efficient collateral management, facilitates market-making in underlying instruments, contributes to derivative market liquidity and plays an important role in the implementation of monetary policy.