## Central Clearing for Government Securities Repos: A CCP-Centric Perspective

_IMF Working Papers, June 12, 2026_

## Source details

**Canonical URL:** [Central Clearing for Government Securities Repos: A CCP-Centric Perspective](https://www.imf.org/en/publications/wp/issues/2026/06/12/central-clearing-for-government-securities-repos-a-ccp-centric-perspective-576850)

## Other formats

- [Markdown version](/en/publications/wp/issues/2026/06/12/central-clearing-for-government-securities-repos-a-ccp-centric-perspective-576850/index.md)
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## Bibliographic details
- Authors: Ismael Boudiaf
- Published: June 12, 2026
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229049443.001

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### Overview
- Government securities-backed repo markets constitute a key funding source for market participants in many jurisdictions.
- Recent stress episodes in repo markets (for example, in US and UK repo markets) have prompted renewed efforts to strengthen repo market resilience.
- A key policy response under consideration is increased central clearing via central counterparties (CCPs), which may be driven by market incentives or by mandatory clearing.
- Central clearing is commonly considered a tool to increase transparency and understanding of markets and improve the risk management practices of market participants.
- The paper provides:
  - A brief overview of post trade-arrangements in select government securities repo markets.
  - A structured analysis of potential benefits and risks of bringing repo markets onto centrally cleared platforms from a CCP perspective.
  - A list of key considerations for CCPs—and indirectly—policy makers when exploring the expansion of repo clearing services or opting for a repo clearing mandate.

### Key findings and arguments
- Central clearing can enhance transparency and market understanding and can improve participants’ risk management practices.
- Transitioning repo transactions from a decentralized, uncleared set-up to central clearing has the potential to make repo and government bond markets more resilient, provided key considerations are addressed.
- Beyond access modalities to repo clearing services, default management and market structure-related aspects are of key importance to ensure a successful transition.

### CCP-focused considerations (structured analysis)
- Access modalities to repo clearing services:
  - How CCPs design access (direct membership, indirect access, interoperability) matters for market functioning and resilience.
- Default management:
  - Robust default management frameworks specific to repo transactions are critical when central clearing is expanded.
- Market structure-related aspects:
  - The structure of the underlying government securities and their post-trade arrangements in each jurisdiction affect the feasibility and design of repo central clearing.
- Interplay with policy decisions:
  - CCPs’ internal choices and policy makers’ decisions (including potential mandates) are interlinked and jointly determine whether central clearing will achieve resilience objectives.

### Policy implications and recommendations
- Policymakers and CCPs should evaluate repo clearing expansion or mandates taking into account:
  - Access arrangements to ensure broad and appropriate participation.
  - Default management capabilities tailored to repo markets.
  - Market structure characteristics and post-trade plumbing of government securities in the relevant jurisdictions.
- Ensuring these factors are addressed increases the likelihood that central clearing will be conducive to more resilient repo and government bond markets.

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## Content in this bundle

- **Working Paper**
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  - [Working Paper (PDF)](/-/media/files/publications/wp/2026/english/wpiea2026119-source-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2026/06/12/central-clearing-for-government-securities-repos-a-ccp-centric-perspective-576850_