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Enhancing repo market transparency: the EU Securities Financing Transactions Regulation

Author

Listed:
  • Bassi, Claudio
  • Grill, Michael
  • Mirza, Harun
  • O’Donnell, Charles
  • Wedow, Michael
  • Hermes, Felix

Abstract

The introduction of the Securities Financing Transactions Regulation into EU law provides a unique opportunity to obtain an in-depth understanding of repo markets. Based on the transaction-level data reported under the regulation, this paper presents an overview and key facts about the euro area repo market. We start by providing a description of the dataset, including its regulatory background, as well as highlighting some of its advantages for financial stability analysis. We then go on to present three sets of findings that are highly relevant to financial stability and focus on the dimensions of the different market segments, counterparties, and collateral, including haircut practices. Finally, we outline how the data reported under the regulation can support the policy work of central banks and supervisory authorities. We demonstrate that these data can be used to make several important contributions to enhancing our understanding of the repo market from a financial stability perspective, ultimately assisting international efforts to increase repo market resilience. JEL Classification: G10, G18, G23

Suggested Citation

  • Bassi, Claudio & Grill, Michael & Mirza, Harun & O’Donnell, Charles & Wedow, Michael & Hermes, Felix, 2024. "Enhancing repo market transparency: the EU Securities Financing Transactions Regulation," Occasional Paper Series 342, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2024342
    Note: 1280809
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Flurry of Worry …. and endless bailouts
      by maryfricker in RepoWatch on 2025-01-28 01:11:54

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    1. Grill, Michael & Hermes, Felix & Wedow, Michael, 2025. "Repo haircuts: Market practices and the impact of minimum requirements on leverage," Finance Research Letters, Elsevier, vol. 71(C).

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    Keywords

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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