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MFA Urges Flexible Margin Standards to Protect Repo Markets

5/3/2025

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Summary

Story summary

The Managed Funds Association (MFA) called for flexible margin standards for non-centrally cleared bilateral repos (NCCBRs).
MFA warns that strict margin requirements may harm repo markets, decrease liquidity, and heighten systemic risk.
They advocate for risk-based margining to enhance risk management across portfolios.
MFA advises against hasty adjustments to best practices prior to the SEC's Treasury clearing mandate implementation.

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Story summary

The Managed Funds Association (MFA) called for flexible margin standards for non-centrally cleared bilateral repos (NCCBRs).
MFA warns that strict margin requirements may harm repo markets, decrease liquidity, and heighten systemic risk.
They advocate for risk-based margining to enhance risk management across portfolios.
MFA advises against hasty adjustments to best practices prior to the SEC's Treasury clearing mandate implementation.