↳ Stricter rules are coming.
• Hedge funds are leveraging gilt repos aggressively.
• Near-zero haircuts mean excessive risk exposure.
• The Bank of England is stepping in to tighten controls.
↳ Three crises have exposed systemic weaknesses:
• Archegos collapse (2021)
• UK gilt turmoil (2022)
• January 2025 yield spike
Tighter regulations could curb speculation.
Banks may see lower profits, but stability improves.
Aligning with global standards is the goal.
Risk must be managed before the next crisis hits.
☑ Read my New Blog “Bank Of England Proposes Stricter Repo Market Oversight”.
☑ See Link in Comments below.
☑ Follow for insights. Repost to inform others.
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