Centrally cleared repo
A repo transaction in which the clearing organisation is the counterparty to both sides: it guarantees settlement and demands collateral.
How to read the number
The participant stops depending on the solvency of any particular counterparty — the same organisation always stands opposite.
When the metric lies
The guarantee is paid for with collateral requirements. When prices move, collateral has to be topped up, and on the same day rather than whenever cash appears.
Also known as: repo with a central counterparty, cleared repo