The new LCH paper has highlighted the impact of new rules on clearing houses
Declining repo market liquidity and
restrictions on central bank access are impacting the ability
of clearing houses to manage their liquidity profiles,
according to a new paper released by LCH.Clearnet.
The European clearing house's latest
paper highlights some of the unintended consequences of
ongoing regulatory reforms and their impact on clearing
The white paper notes that as clearing
mandates make clearing houses ever more reliant on repo
markets to manage liquidity, bank capital rules are reducing
the liquidity banks can make available to clearing houses and
other repo market players.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.