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Toward Further Development of the Repo Market

April 28, 2015
Nobukazu Ono, Kouga Sawada, Akira Tsuchikawa
Financial Markets Department

In money markets both inside and outside Japan, repos have been a major instrument in both borrowing and lending of cash and securities. With the recent global financial crisis in mind, discussions are taking place at international forums such as the G20 and the Financial Stability Board (FSB) on how to further increase the stability and transparency of repos and securities lending. Within Japan, it is vital to improve the efficiency of repos and speed up settlement even further, since there is demand for a facility that allows the rapid execution of same-day settlement of repos to shorten the Japanese government bond (JGB) settlement cycle. The Bank of Japan has been participating actively in these discussions and will continue to contribute, as the central bank, to further improvement of the stability and efficiency of repos and development of the repo market.

Notice

Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2015-E-4, is a translation of the original Japanese version, 2015-J-5, published in March 2015. The views expressed in the Review are those of the authors and do not necessarily represent those of the Bank of Japan.

If you have comments or questions, please contact Akira Tsuchikawa (E-mail:akira.tsuchikawa@boj.or.jp), Financial Markets Department.