The same process works when market participants fear they won’t be paid back or be able to sell their assets. Those fears themselves can drive instability. The implication is that risks to financial stability have a couple of features. First, the risks must have relatively near-term effects, such that the risk manifesting could result in outstanding contracts being breached.
The market would also benefit from this solution: reporting infrastructures would have to set-up procedure to retrieve and transmit the data, but they may offer an additional service to their participants given the economic value of information. Ultimately, not only authorities, but market participants and the financial markets more widely would benefit from the general increased transparency on the euro repo market. VI.