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.

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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.

What can be used as collateral?

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RESOURCES

A Primer on the GCF Repo® Service

DTCC GCF Repo Service

Introduction to Money Markets