> For the complete documentation index, see [llms.txt](https://docs.xft.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xft.finance/bitnet/use-cases/archive/gcf-repo-service.md).

# GCF Repo Service

<mark style="color:purple;">COUNTERPARTIES</mark>

Federal Reserve Banks\
\- Fedwire \
Commercial Banks \
Dealers \
Repo Brokers \
Borrower \
Lender \
Collateral \
The Bank of New York Mellon \
DTCC\
\- FICC\
\- Real-Time Trade Management (RTTM®)

<mark style="color:purple;">PROBLEM</mark>

No pledging municipal bonds. The size of each DVP repo trade that can be submitted is $50 million. Complexity and counterparty risk. Slow Fedwire.

<mark style="color:purple;">SOLUTION</mark>

Settle cash leg of DvP using DTCC Digital Dollar instead of Fedwire.

***

<details>

<summary>What is a repurchase agreement (repo)?</summary>

A contract between two parties where one party sells a security to another party with the commitment to buy it back at a specified price at a designated future date.

</details>

<details>

<summary>What can be used as collateral?</summary>

</details>

<figure><img src="/files/LXYPFBsYbkcT1LuRK97C" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/G6NL0wXhPrwkverIf0He" alt="" width="373"><figcaption></figcaption></figure>

***

<mark style="color:purple;">RESOURCES</mark>

[A Primer on the GCF Repo® Service](https://www.newyorkfed.org/medialibrary/media/research/epr/2015/EPR_2015_vol21no2.pdf)

[DTCC GCF Repo Service](https://www.dtcc.com/clearing-and-settlement-services/ficc-gov/gcf-repo)

[Introduction to Money Markets](https://www.gsam.com/content/dam/gsam/pdfs/us/en/miscellaneous/Introduction-to-Money-Markets-May-2020.pdf)