ECB's Coeure: The repo market is undergoing significant change

Key highlights from the Speech by Benoît Cœuré, Member of the Executive Board of the ECB, at the ERCC General Meeting on “The repo market: market conditions and operational challenges”, Brussels, 14 November 2017.

The repo market is undergoing significant change.

Regulation is forcing market participants to re-examine the extent of their engagement and make more efficient use of their balance sheets.

This adjustment process coincides with central banks worldwide adopting a series of unconventional monetary policy measures that have also affected the nature and scope of repo market activity.

A high degree of persistence in repo specialness lends support to the idea that the stock of securities already held by the ECB is likely to be a powerful channel.