This report examines the barriers to the emergence of a euro-wide repo market and makes a series of policy recommendations concerning the operation of monetary policy procedures of the ECB, the legal framework for repos, especially at a cross-border level, the infrastructure for clearing and settlement of repos, and issues related to prudential supervision.
Valentina Stadler was a Research Fellow at CEPS at the time of writing this report and Karel Lannoo is the Chief Executive Officer at CEPS and head of the financial markets programme. The paper was originally prepared in the framework of a tender for the European Commission, Directorate General for Economic and Financial Affairs.
