IDEAS home Printed from https://ideas.repec.org/a/aza/jsoc00/y2025v17i3p219-233.html
   My bibliography  Save this article

Cleared repo: Models, benefits and potential growth

Author

Listed:
  • Comotto, Richard

    (London Reporting House, UK)

  • Scherff, Gilbert

    (Asqin, Reitscheweg 45, The Netherlands)

  • Walker, Martin

    (Gillmore Centre for Financial Technology, UK)

Abstract

In June 2027 the clearing of repos on US Treasuries will become compulsory in the US market, and it is possible that regulators in other markets may follow suit. Given the high levels of non-cleared repo in both the US and Europe, increased mandating of clearing could have a major impact on the operation of the repo market and potentially more widely on financial markets. This paper puts those changes into the wider context of the motivations, origin and evolution of the cleared repo market since the 2000s in the US and Europe. It describes the mechanics and main characteristics of the major significant forms of cleared repo, provided by the Fixed Income Clearing Corporation (FICC), London Clearing House (LCH) and Eurex. It also describes recent market trends, concluding with an analysis of the potential impact of compulsory clearing in the United States and probability of other jurisdictions following the US example. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Suggested Citation

  • Comotto, Richard & Scherff, Gilbert & Walker, Martin, 2025. "Cleared repo: Models, benefits and potential growth," Journal of Securities Operations & Custody, Henry Stewart Publications, vol. 17(3), pages 219-233, June.
    • Handle: RePEc:aza:jsoc00:y:2025:v:17:i:3:p:219-233
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/9518/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/9518/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    repo; clearing; capital markets; sponsored repo; cleared repo; liquidity; DVP repo; GCF repo; capital; LCR; FICC; Eurex; CCP;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jsoc00:y:2025:v:17:i:3:p:219-233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.