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

PhD Student Satchit Sagade published in Bank of England Working Paper

17 December 2012
ICMA Centre PhD student Satchit Sagade recently published a working paper for the Bank of England together with Research Economist for the Bank of England, Evangelos Benos. The paper entitled “High-frequency trading behaviour and its impact on market quality: evidence from the UK equity market”, studies the behaviour of high-frequency traders in the UK equity market and analyses its impact on market quality.
Research news

CISI Educational Trust Award

13 May 2013
The ICMA Centre is pleased to announce the CISI Educational Trust Award.

New project with Cambridge and 12 global asset managers to advance value of sustainable investing

1 November 2013
Dr Andreas Hoepner, Associate Professor of Finance and Rupini Rajagopalan, PhD student, both from the ICMA centre, Henley Business School have been recently working together with the University of Cambridge Programme for Sustainability Leadership (CPSL) on a new project to advance the value of sustainable investing.
Business News