Infographics: The "Uncleared" Dealer-to-Customer Repo Market
flows in the uncleared (i.e. non-centrally cleared) dealer-to-customer repo market, where securities are transferred between accounts to enable secondary market trading (unlike the triparty market)
Why is it necessary to use the Fedwire settlement system when both parties to the repo have cash and securities accounts at BNY? Couldn't the trade just be settled on the books of BNY?
Why is it necessary to use the Fedwire settlement system when both parties to the repo have cash and securities accounts at BNY? Couldn't the trade just be settled on the books of BNY?