The Financial Plumbing of the Gcf Repo® Service

18 Pages Posted: 16 Dec 2016 Last revised: 16 Dec 2017

See all articles by Paul Agueci

Paul Agueci

Federal Reserve Bank of New York

Leyla Alkan

Federal Reserve Bank of New York

Adam M. Copeland

Federal Reserve Bank of New York

Kate Pingitore

Federal Reserve Banks - Federal Reserve Bank of New York

Caroline Prugar

Federal Reserve Bank of New York

Tyisha Rivas

Federal Reserve Bank of New York

Date Written: 2015

Abstract

The authors describe the ways that intraday credit was used to facilitate the settlement of trades before reforms to the tri-party repo settlement system. In particular, they focus on two main processes: the end-of-day settlement and the morning unwind. The authors then describe why this extension of intraday credit by the clearing banks is problematic, specifically pointing to concerns that a clearing bank may not be able to absorb the impact of a failing dealer. The authors also discuss various reforms to the tri-party repo settlement process, which, they note, are likely to influence the costs of settling GCF Repo transactions.

Keywords: GCF Repo, tri-party repo reforms, financial intermediation

JEL Classification: E42, E58, G23, G28

Suggested Citation

Agueci, Paul and Alkan, Leyla and Copeland, Adam M. and Pingitore, Kate and Prugar, Caroline and Rivas, Tyisha, The Financial Plumbing of the Gcf Repo® Service (2015). Economic Policy Review, Issue 2, pp. 7-24, 2015, Available at SSRN: https://ssrn.com/abstract=2886332

Paul Agueci (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Leyla Alkan

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Adam M. Copeland

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Kate Pingitore

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Caroline Prugar

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Tyisha Rivas

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
58
Abstract Views
516
rank
406,724
PlumX Metrics