Repo markets, while significantly larger, incorporate entities that do not have access to central bank liquidity and therefore their pricing is less robust than call rates for developing benchmark that tracks possible policy rate actions. 14. In the term money market, FBIL is publishing term MIBOR benchmarks. In the absence of a liquid term money market, these benchmarks are based on polled submissions.
The development of the term money market remains elusive notwithstanding several reforms both from a regulatory and a liquidity management perspective. Most of the constraints have been addressed / removed in phases. The eligible participant base in term money markets has been expanded.