Introduction of GC(General Collateral) repo

GC Repos

Understanding the US Interbank GCF Repo® Market

Intrabank and Interbank GCF Repo-

The “intrabank GCF Repo” trades that use the same clearing bank can settle without the need for the clearing banks to communicate. In contrast, “interbank GCF Repo” involves both clearing banks and requires some communication between the two. This difference is important because intrabank trades mostly conform to the road map for repo settlement set forth by the Tri-party Repo Infrastructure Reform Task Force, but interbank trades don’t. Indeed, settling an interbank GCF Repo currently requires the clearing banks to extend large amounts of credit.