If balance sheet restraints prevent banks from providing repo liquidity, but asset managers are labelled «shadow bankers» for peer-to-peer repo - what do regulators want? Roelof van der Struik, manager for Treasury Trading & Commodities at pension fund manager, PGGM sees a backstop to accessing central bank liquidity as one option. Andy Hill, senior director at the International Capital Market Association (ICMA) says that members’ proposals may not be acceptable - disintermediation will not work but they are hamstrung by their regulatory obligations to retain capital against their trading activity. He argues there is a case for recalibrating some of these obligations, notable the leverage ratio as part of the Basel III Capital rules.
8. Januar 2020