Williams suggests centrally clearing standing repo operations could improve participation and efficacy, noting other central banks moving this way.
“Centrally clearing SRPs would be one way to reduce such cost and thus could further improve counterparty participation and the efficacy of SRPs in curbing rate pressures and maintaining the stability of funding markets.”
Williams argues centrally clearing standing repo operations would improve participation and enhance monetary policy effectiveness.
“Strictly from a monetary policy implementation perspective, there are likely benefits from offering a centrally cleared version of SRPs.”
Williams sees benefits from centrally clearing standing repo operations to improve participation and enhance interest rate control.
“Centrally clearing SRPs would be one way to reduce such costs. Strictly from a monetary policy implementation perspective, there are likely benefits from offering a centrally cleared version of SRPs.”
Williams says Treasury market faces expanded central clearing, regulatory changes, and likely growth in supply.
“This forum comes at a critical time of transition, with the U.S. Treasury market preparing for expanded central clearing, potential changes in regulation, and likely growth in Treasury supply.”
Williams reports centrally cleared MMF repo volumes exceed one trillion dollars, over half of MMF Treasury repo positions.
“Data indicate that MMF repo volumes cleared with FICC well exceed $1 trillion, comprising over half of MMF Treasury repo positions ( Panel 8 ).”