Follow the Cash! Microstructure of Repo Markets

Gara Afonso, Jun-Davinci Choi, Gonzalo Cisternas and Will Riordan
Additional contact information
Gonzalo Cisternas: https://www.newyorkfed.org/research/economists/cisternas

No 20260929, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The repo market in the U.S. is a mosaic of segments with distinct participants and various settlement and clearing practices. Why do large cash lenders typically settle their trades through a third-party agent? Why does the interdealer market clear through a central counterparty? Why do levered investors favor bilateral trades? In the second post of this series, we follow the cash as it navigates through repo markets to better understand the costs and benefits that shape the existing market structures.

Keywords: repo markets; intermediation; dealers; money markets (search for similar items in EconPapers)
JEL-codes: E52 G1 G21 G23 (search for similar items in EconPapers)
Date: 2026-09-29
References: Add references at CitEc
Citations:

Downloads: (external link)
https://libertystreeteconomics.newyorkfed.org/2026 ... ure-of-repo-markets/ Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:103827

Ordering information: This working paper can be ordered from

DOI: 10.59576/lse.20260929

Access Statistics for this paper

More papers in Liberty Street Economics from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().