Sep
17
Wall Street’s Trillion-Dollar Monopoly Has Repo Traders on Edge
By-
In tri-party repo, BNY Mellon emerges as lone clearing bank
-
‘Single point of failure’ seen as a risk to financial system
These days, it’s virtually impossible to become a bona fide monopoly on Wall Street.
But that’s exactly what is happening in one vital part of the U.S. financial system, which has more than a few traders on edge.
Come mid-2018, just one entity — the Bank of New York Mellon Corp. — will be responsible for ensuring almost two trillion dollars of securities financed by so-called repurchase agreements are cleared and settled each and every day. With its lone longtime rival, JPMorgan Chase & Co., exiting the business, BNY Mellon began the process of moving over clients this summer…
Wall Street’s Trillion-Dollar Monopoly Has Repo Traders on Edge
