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The rise of repo

01 June 2007

This year the isf global repo survey has almost doubled in size with over 100 respondents, up from 59 last year. The growth of the survey suitably matches the surging global repo market, the fastest growing of all capital markets. Marek Sanders reports on the winners of the survey and how this market, through products and regulation, is changing.

The available figures say a lot about the global repo market – primarily that it's a very successful one. The latest European Repo Council Survey put the European repo market at €6.4 trillion ($8.6 trillion) at the beginning of this year, with an impressive 14% year-on-year growth. The US market is smaller but by no means small, and estimated to be growing at the same rate as the European market. In Asia and Latin America the repo industry is a lot smaller but becoming a common emerging factor in most advancing capital markets.

As more and more firms expand their repo services, or enter the market for the first time, a handful of firms have crested this wave of global repo growth and come first in this year's survey – anonymously selected by their counterparties. This year's survey garnered a response rate of 104 participants in total, with 11...


 

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