NYSE Liffe U.S. Begins to Trade in Futures on DTCC Repo Index
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NYSE Liffe U.S. began trading in futures contracts based on the Depository Trust & Clearing Corp. repurchase agreement indexes to enhance dealers ability to hedge short-term interest rates.
The futures contracts, which began today, track movements in the $400 billion market for general collateral finance repurchase agreements using three DTCC GCF Repo indices. Changes in repo rates affect dealers financing costs, which use them to finance debt holdings as well as to increase leverage.