Financial Times FT.com

US repo deals face penalties

By Michael Mackenzie in New York

Published: January 6 2009 18:14 | Last updated: January 6 2009 18:14

Changes are coming to the US government repurchase market as the industry hopes that new steps in self-regulation will spare this crucial sector of finance from greater official super­vision.

At a time when the sale of new Treasury debt is forecast to rise above $2,000bn in the current financial year, a smoothly functioning repo market is critical for Wall Street dealers and investors.

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