An Empirical Analysis of the Gcf Repo® Service
13 Pages Posted: 16 Dec 2016 Last revised: 16 Dec 2017
Date Written: 2015
This article examines how dealers use the GCF Repo service. It begins by explaining the strategies that dealers employ when trading GCF Repo and then uses empirical analysis to quantify the predominance of these strategies. Looking across all dealers and all days, the study finds that on an average day, at least 23 percent of dealers focus on strategies to raise cash and at least 20 percent focus on managing their inventory of securities. This activity involves using GCF Repo to both exclusively source collateral and perform collateral swaps.
Keywords: GCF Repo, tri-party repo reforms, financial intermediation
JEL Classification: E42, E58, G23, G28
Suggested Citation: Suggested Citation