Through the tokenisation of workflows, counterparties will be able to reference a single source, addressing challenges in existing workflows, such as inconsistent data sources, timing mismatches, and fragmented pipelines
This builds on the Commonwealth Bank of Australia’s previous engagement with RepoClear after joining as the first Australian member of RepoClear at LCH
The report is the ninth in a series of guides on domestic repo markets, joining guides covering China, Japan, Indonesia, the Philippines, and South Korea, to name a few
The initiative builds on the existing agreement between both firms, under which Iberclear already facilitates the settlement of Spanish, French, and German government bond trades
The framework enables central banks in jurisdictions outside the euro area to address risks of euro liquidity shortages swiftly to make the facility more flexible and broader
The group has outlined its counterparty risk-dependent stance on tokenised collateral, preferring systemically important institutions to third or fourth-tier banks
The report warns that leverage, demand and supply imbalances, as well as high levels of concentration within repo markets, have the potential to create strains
