RBA sees no ‘financial stability case’ for repo CCP
Central bank decides not to actively encourage the (re)creation of a repo CCP
The Reserve Bank of Australia (RBA) has decided not to "actively promote" the creation of a central counterparty (CCP) for repos, saying it does not see a "financial stability case" for such an institution.
In a report published today (October 28), the RBA sets out its conclusions on the costs and benefits of a repo CCP, following a consultation launched in March this year. Ultimately the central bank decided the benefits appeared limited and the costs could be high.
"Given the participation
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