Fed support high on wish list for buy-side repo clearing
Risk USA panellists want liquidity support for planned new services
As clearing houses draw up plans to expand their repo services to the buy side, the one selling point some firms want to see is one that may not be available: emergency backing from the Federal Reserve.
The Dodd-Frank Act bars the central bank from bailing out a stricken company, and insists any emergency lending be done for the benefit of the financial system. It's not completely clear whether liquidity support for a central counterparty (CCP) would be possible within these confines or not, but
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