What is a GCF repo?
General collateral financing (GCF) trades are a type of repurchase agreement (repo) that is executed without the designation of specific securities as collateral until the end of the trading day. GCF trades utilize several inter-dealer brokers, who act as intermediaries for the GCF trades.
What is Gc borrow?
GC or general collateral is a set or basket of security issues which trade in the repo market at the same or a very similar repo rate, which is called the GC repo rate. As a measure of the cost of borrowing cash, the GC repo rate is highly correlated with unsecured money market interest rates.
What is special repo rate?
A special is an issue of securities that is subject to exceptional demand in the repo and cash markets compared with very similar issues. The spread between the GC repo rate and a special repo rate represents the return which the buyer of that security is willing to give up on the cash he pays for that security.
What is the repo market and how does it work?
The repo market is essentially a two-way intersection, with cash on one side and Treasury securities on the other. They’re both trying to get to the other side. One firm sells securities to a second institution and agrees to purchase back those assets for a higher price by a certain date, typically overnight.
What is equity repo?
A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price.
Why repo rate is important?
Repo rate is used by monetary authorities to control inflation. Description: In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.
What does Ficc stand for?
Fixed Income Clearing Corporation
The Fixed Income Clearing Corporation (FICC) is a regulatory agency that deals with the confirmation, settlement, and delivery of fixed-income assets in the U.S. The FICC ensures the systematic and efficient settlement and clearing of U.S. government securities and mortgage-backed security (MBS) transactions in the …
What is a GCF Repo?
DTCC’s Fixed Income Clearing Corporation developed the GCF Repo so that dealers could trade general collateral repos, based on rate, term and underlying product throughout the day without requiring intra-day, trade-for-trade settlement on a delivery-versus-payment basis. What’s the data source?
What does DTCC stand for?
DTCC’s Fixed Income Clearing Corporation, which serves as the clearing house for trading in U.S. government securities. BY ACCESSING OR USING THIS WEBPAGE OR THE DTCC GCF REPO INDEX DATA YOU AGREE TO THE TERMS AND CONDITIONS ON THIS PAGE AND IN THE TERMS OF USE.
What are FICC indexes?
These are instruments that clear at the Government Securities Division (GSD) of the Fixed Income Clearing Corporation (FICC). The index’s rates are par-weighted averages of daily activity in the GCF Repo market and reflect actual daily funding costs experienced by banks and investors, per underlying asset class.
What is FICC’s Collateral Repo guarantee?
Guaranteed Settlement —FICC’s settlement guarantee and risk management protections provide maximum safety for the general collateral repo marketplace. GCF Repos are guaranteed as soon as FICC receives the trade data, thus minimizing intra-day counterparty credit risk.