GCF Repo Service
COUNTERPARTIES
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®)
PROBLEM
No pledging municipal bonds. The size of each DVP repo trade that can be submitted is $50 million. Complexity and counterparty risk. Slow Fedwire.
SOLUTION
Settle cash leg of DvP using DTCC Digital Dollar instead of Fedwire.
What is a repurchase agreement (repo)?
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.
RESOURCES
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