Skip to main content

A supplementary note on the systemic importance of collateral and the role of the repo market

A new supplementary paper from the ICMA’s European Repo Council, written by Richard Comotto, explains the importance of collateral to the stability and efficiency of the financial system. The paper highlights how the proposed Financial Transaction Tax (FTT) would impact the movement of collateral, posing significant systemic risks and interrupting the flow of money between banks, to governments and to the real economy.

The supplementary note follows on from an earlier paper titled Collateral damage: the impact of the Financial Tax on the European repo market and its consequences for the financial markets and the real economy. Richard Comotto, Senior Visiting fellow at the ICMA Centre, will be speaking in more detail at the upcoming conference organised by the ICMA European Repo Council, titled “A collateralised future - what really happened in the repo market during the crisis and how will it cope with growing collateral demand, stagnant supply and regulatory uncertainty?” on 11 June 2013.

You can find out more information about the conference here.

Published 10 May 2013

You might also like

ICMA Centre students to visit Tsinghua University for Summer Program 2016

24 June 2016
Three masters in finance students at the ICMA Centre have been awarded scholarships to take part in a summer exchange program with China’s PBC School of Finance, Tsinghua University.

The ICMA Centre Celebrates Cutting of the First Turf

4 July 2007
The ICMA Centre celebrated the start of work on the Centre's extension and the new University of Reading Business School building last week. The Commencement Ceremony which was followed by a champagne reception was attended by more than 200 guests, including businesses from the City and all over the world, as well as staff and alumni.

ICMA Centre travel to Greece for British Council Education Fair

11 November 2009
On Friday 6th November 2009, the ICMA Centre travelled to Athens, Greece to take part in the British Council UK Education Fair. These fairs are held in numerous locations across the world, and are excellent opportunities for E.U and overseas students to find out more about studying in the UK.