25 March 2011: Update on reform of market infrastructure in Italy and Greece since the ERC white paper of 13 July 2010
The ICMA European Repo Council* has produced a further update to its July White Paper on the Operation of the European Repo Market, the Role of Short-Selling, the Problem of Settlement Failures and the Need for Reform of the Market Infrastructure.
This new paper sets out the subsequent responses to the ERC White Paper from the Greek authorities and the Italian CSDs, and summarises progress since July 2010 towards the elimination of the identified barriers to interconnectivity.
Update to July European repo market white paper, 17 December 2010
The ICMA European Repo Council* has updated its July White Paper on the Operation of the European Repo Market, the Role of Short-Selling, the Problem of Settlement Failures and the Need for Reform of the Market Infrastructure.
The new paper sets out the responses to the ERC White Paper from national central securities depositories and central counterparties, and describes the progress that has been made since July towards the elimination of barriers to interconnectivity. See below for the original July white paper.
The ERC* White Paper was commissioned by the ICMA European Repo Committee in recognition of the fact that there is a significant amount of work under way that needs to proceed from a well informed appreciation of a number of elements of the repo market’s operation and infrastructure. The paper, written by Richard Comotto of the ICMA Centre, examines the workings of the repo market. It covers a wide range of repo market topics, including specials, shorts and fails. With respect to the latter it covers normal resolution mechanisms and the extra problems associated with low/negative interest rate environments. The White Paper then goes on to describe market infrastructures, identifying those features which are desirable for these to be robust. Existing problems, of which some have already been identified in meetings organised by the European Commission, are highlighted along with possible solutions and recommendations.
*On 4 December 2015, the name of the European Repo Council (ERC) was changed to the European Repo and Collateral Council (ERCC).