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Repo Clearinghouse Adds Buy-Side in Move to Quash Systemic Risk 

May 24, 2017

Liz McCormick, Bloomberg

"The only U.S. central clearinghouse for repurchase agreements is talking to dozens of investors interested in joining its new tri-party program, in a move that will bring cash lenders onto the platform for the first time.

Depository Trust & Clearing Corp. has a roster of cash providers, such as asset managers, who are seeking to participate after the U.S. Securities and Exchange Commission this month approved the DTCC’s plan to expand its central-clearing repo service to institutional investors. Previously, the DTCC only backstopped repos between dealers, who use the market to procure overnight funds by lending securities in exchange for cash.

The firm, which processes securities transactions in the U.S., is talking with cash providers and dealers that want to trade with them. It predicts the first transaction may take place in the second half of the year as it embarks on a venture that’s intended to safeguard a key funding market for Treasuries trading."

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