Hey, I appreciate it, thank you. I think I was not 100% clear about what I was trying to say. I tried to point out that SRF repo transactions are bilateral with the Fed and not centrally cleared. That means they do not net with other repo transactions that were done via the CCP. I agree with the two issues you are pointing out.
How are trades resulting from SRF operations settled?
In the tri-party repo market, trades are settled on the books of a clearing bank. Trades resulting from SRF operations are cleared and settled on the tri-party repo platform operated by the Bank of New York Mellon. https://www.newyorkfed.org/markets/repo-agreement-ops-faq
Hi, really enjoy your publications.
One small remark, the srf is already a triparty facility (BNY Mellon clearing it). The issues with the srf are 1/stigma of using it 2/ market timing
Hey, I appreciate it, thank you. I think I was not 100% clear about what I was trying to say. I tried to point out that SRF repo transactions are bilateral with the Fed and not centrally cleared. That means they do not net with other repo transactions that were done via the CCP. I agree with the two issues you are pointing out.
I see the below and I assume they net no?
How are trades resulting from SRF operations settled?
In the tri-party repo market, trades are settled on the books of a clearing bank. Trades resulting from SRF operations are cleared and settled on the tri-party repo platform operated by the Bank of New York Mellon. https://www.newyorkfed.org/markets/repo-agreement-ops-faq