repo markets

The ever increasing demands on collateral in the post financial crisis regulatory landscape have, increasingly, called into question whether or not there is sufficient collateral of sufficient quality to safely and efficiently oil the cogs of the post-trade world. Collateral has taken centre stage and the industry, almost universally, has been discussing potential shortfalls prior to the implementation of key regulatory mandates such as central clearing of trades.

It is a clear goal in the post-2008 financial landscape to push towards risk mitigation and transparency. Mandates such as clearing and reporting are being phased in to ensure both pillars are built into financial markets, but how can they be guaranteed? Through the posting of collateral against trading activity.