NY Fed Wants Further Tri-Party Repo Market Risk Reduction

Law360, Washington (February 13, 2014, 7:07 PM EST) -- Ongoing reforms have lessened the systemic risks inherent in so-called tri-party repo markets used by securities dealers to secure short-term funding, but more work is needed to make the markets safer, The Federal Reserve Bank of New York said Thursday.

The two clearing banks which serve as transaction intermediaries in U.S. tri-party repo markets — the Bank of New York Mellon Corp. and JPMorgan Chase & Co. — and other market participants have made significant efforts to reduce risk in those markets, as the banks had pledged...
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