European repo market sees steady growth
04 April 2019 Zürich
Image: Shutterstock
The European repo market is showing continued steady growth as the market size reached €7,739 billion, according to a survey by the European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA).
ICMA explained that the baseline figure for European market size at €7,739 billion is up from €7,351 billion in the June 2018 survey.
Year on year this represents an increase of 6.3 percent year-on-year since the December 2017 survey.
The survey calculated the amount of repo business outstanding on 5 December 2018, from the returns of 58 offices of 54 financial groups.
Godfried De Vidts, senior advisor to ICMA’s ERCC, said: "Modest growth in repo outstandings since the last survey show that the secured markets continue to play a pivotal role in servicing the financial markets.”
“Various regulatory and prudential initiatives designed to improve financial stability continue to increase the need for further use of collateral. Political events will cause further shifts in euro repo trading locations when the June 2019 survey takes place.”
He added: “The ICMA ERCC repo survey remains the unique resource for buy and sell side participants and regulators alike to understand the impact of changes on market behaviour during the implementation of the Securities Financing Transactions Regulation.”
ICMA explained that the baseline figure for European market size at €7,739 billion is up from €7,351 billion in the June 2018 survey.
Year on year this represents an increase of 6.3 percent year-on-year since the December 2017 survey.
The survey calculated the amount of repo business outstanding on 5 December 2018, from the returns of 58 offices of 54 financial groups.
Godfried De Vidts, senior advisor to ICMA’s ERCC, said: "Modest growth in repo outstandings since the last survey show that the secured markets continue to play a pivotal role in servicing the financial markets.”
“Various regulatory and prudential initiatives designed to improve financial stability continue to increase the need for further use of collateral. Political events will cause further shifts in euro repo trading locations when the June 2019 survey takes place.”
He added: “The ICMA ERCC repo survey remains the unique resource for buy and sell side participants and regulators alike to understand the impact of changes on market behaviour during the implementation of the Securities Financing Transactions Regulation.”
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