Triparty repo is certainly a dynamic segment which after the 2008 contraction shows again a growing trend. I would like to make some preliminary considerations on three policy issues that are currently at the centre of the international debate on repo markets. First, the pro-cyclical nature of margin requirements used in securities financing transactions.
The 75 year journey of RBI gives us a glimpse of the spirit of the times and the Policy concerns of the age. We also have delightful anecdotes on “the note that never was”. This was a note signed by the first governor Osborne Smith. It was not issued ‘cos Edward VII’s heart had its reasons.