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| Tri-Party Repo Infrastructure Reform |
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A stable and well-functioning tri-party repo market is critical to the health and stability of the U.S. financial markets and the U.S. economy for several reasons. The tri-party repo market
- creates market liquidity and price transparency for U.S. government and corporate securities that foster stable financing costs for U.S. companies and the U.S. government,
- is interconnected with other payment clearing and settlement services that are central to U.S. financial markets and are operated by the two tri-party agent banks, and
- serves as a critical source of funding for systemically important broker-dealers that make markets in U.S. government and corporate obligations.
To strengthen the resiliency of the tri-party repo infrastructure in stressed market conditions, the Federal Reserve looks to market participants to reduce reliance on intraday credit, make risk management practices more robust to a broad range of events, and take steps to reduce the risk that a dealer's default could prompt destabilizing fire sales of its collateral by its lenders.
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STATISTICAL DATA
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NEWS AND ANNOUNCEMENTS
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December 20, 2012 |
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July 18, 2012 |
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February 15, 2012 |
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May 17, 2010 |
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SPEECHES
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February 1, 2013 |
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August 2, 2012 |
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June 12, 2012 |
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May 2, 2012 |
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April 9, 2012 |
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CHRONOLOGY
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The following is a brief chronology of events in the tri-party repo market and efforts to make the market more resilient:
- In 2008, weaknesses in the tri-party repo market surfaced.
- In 2009, the Tri-Party Repo Infrastructure Reform Task Force, comprised of diverse range of market participants, was established.
- May 2010, the Task Force issued a report with recommendations to modify tri-party repo settlement process to reduce market's dependency on intraday credit provided by clearing banks.
- May 2010, the New York Fed issued a white paper on tri-party repo infrastructure reform.
- February 2012, the New York Fed announced that the Federal Reserve would intensify supervisory oversight of key tri-party market participants' efforts to implement Task Force recommendations in timely fashion.
- November 2012, J.P. Morgan Chase introduced collateral optimization functionality that reduces intraday credit exposure in the tri-party repo market by removing non-maturing term trades from the unwind.
All files in PDF format  |
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