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Bringing D2C repo into the electronic age

16 January 2012

Repo markets – in the dealer-to-customer space – have traditionally been the domain of voice and message-based trading. Nigel de Jong, a director of money markets at Tradeweb in London, explains how the burgeoning shift towards electronic trading can help participants

Read more: Tradeweb Nigel de Jong

Credit-risk averse institutions are migrating towards collateralised lending, contributing to long-term growth in the European repo market. This trend – which began towards the middle of 2007 at the onset of the credit crunch – has driven outstanding repo volumes to €7trn ($9trn), according to ICMA’s European repo market survey conducted in June 2011, up from €4.6trn ($5.9trn) in December 2008.As one of the largest and most active areas of the money markets, a repo (or repurchase agreement) may be thought of as a financial instrument in...