04.26.2021

ICMA Consults On Role Of Repo In Sustainable Finance

04.26.2021
ICMA Consults On Role Of Repo In Sustainable Finance

The ICMA European Repo and Collateral Council (ERCC) has published a consultation paper on the role of repo in green and sustainable finance, exploring the sustainability aspects of repo and collateral as well as assessing the existing opportunities and potential risks in this area. In particular, the paper looks at the different possible intersections between the repo and collateral market and sustainable finance: 1. Repo with green and sustainable collateral; 2. Repo with green and sustainable cash proceeds and 3. Repo between green and sustainable counterparties.

The paper has been published alongside a list of consultation questions and is intended to serve as a starting point for promoting a broader discussion in the repo community on sustainability. It reflects the complexity of the topic and the variety of views.

ICMA invites all interested stakeholders to respond and comment on the paper by filling in our online survey which will be open until 28 May 2021. The results will help the ICMA ERCC to identify areas of focus going forward and help to frame future workstreams, if required.

Source: ICMA

Related articles

  1. Sell Side’s Task: Optimize Buy-Side Trading

    Same-day execution reduces clients’ risk and resources as optimization can take up to 5 days.

  2. Buy Side Forced to Review Collateral Arrangements

    Initial margin for centrally cleared markets increased by $300bn over March 2020.

  3. Buy Side Forced to Review Collateral Arrangements

    More buy-side firms will be caught by the new rules.

  4. New Collateral Transformers To Emerge

    Exposures and margin calls can be monitored in real-time.

  5. Reducing costs associated with funding and liquidity is becoming increasingly important.