It, therefore, becomes imperative to be watchful of volatility in interest rates on account of activities of various market players. 15. Active, unfettered repo market is one of the critical elements of such BCD construct. Repo markets were one of the most active funding markets globally before the crisis. Postcrisis, however, several work-streams under FSB, IOSCO, etc.
are working internationally to tighten the regulation of repo markets, including regulations on re-use of securities, margins and haircuts, leverage built-up through repo markets, etc. These are not market conduct issues but prudential issues, being discussed in the context of systemic stability. 16. Market regulation cannot remain a value-neutral term.