The strategic imperative for a new era of market structure
27 June 2025
Matt Chessum, director of securities finance at S&P Global Market Intelligence, discusses data analytics in respect of the repo market, shining a light on its value during periods of volatility, and the importance of client fairness
Image: stock.adobe.com/zhuan
The repo landscape is undergoing a data-driven revolution, with analytics no longer a luxury but a necessity. In a world of tighter regulation, volatile funding conditions, and evolving client expectations, market participants can no longer afford to operate without comprehensive access to analytics. The ability to see, understand, and act on financing data across markets and instruments is now a prerequisite to remain competitive and compliant.
To navigate modern financial markets, all participants 鈥� buy side and sell side alike 鈥� must invest in and have access to robust repo data analytics. From liquidity optimisation to risk oversight, and from pricing transparency to market integration, analytics is the key to navigating the structural shifts reshaping repo markets globally.
No longer optional
Today鈥檚 repo market demands a level of precision and responsiveness that simply cannot be achieved without data analytics. Traditional practices based on static spreadsheets and fragmented systems have become a liability. Institutions must process vast quantities of trade, collateral, and counterparty data across a spectrum of instruments and venues. Without this capability, firms fall behind in pricing, risk control, and client service.
Data-driven strategies are no longer confined to high-frequency trading or sophisticated algorithmic functions. They are becoming the foundation for even the most basic financing decisions. Whether you are adjusting your intraday funding positions or rebalancing collateral pools, your ability to make informed decisions in a timely manner relies entirely on the availability and quality of your analytics infrastructure.
The strategic value of analytics is no longer in question. It is the cornerstone of operational agility, regulatory compliance, and competitive advantage. Market participants who lack access to these capabilities risk flying blind in a fast-moving and increasingly transparent environment.
Visibility across markets
When funding markets seize or dislocations emerge, access to analytics that span markets and instruments separates leaders from laggards. Historical events 鈥� from the 2019 US funding shock to the pandemic-induced stress of 2020 鈥� prove that those with broad-based monitoring, alerting, and forecasting tools are better positioned to manage through volatility.
Participants need to see where funding is flowing, what collateral is moving, and where stress is accumulating across books, venues, and counterparties. Holistic visibility empowers better decision-making, supports intraday liquidity management, and ensures that critical funding needs can be met even under pressure.
Crucially, visibility must transcend asset classes, legal structures, and geographies. The best-positioned firms integrate data not just from repo desks but also from derivatives, securities lending, credit, foreign exchange, and cash markets to identify correlations, detect arbitrage opportunities, and execute holistic liquidity strategies. As market participants face increasing globalisation and multi-currency collateralisation, such visibility becomes an enabler of scale and resilience.
The integration of securities lending and repo datasets creates a powerful synergy that enhances market insights and operational efficiency. By interlacing these datasets, stakeholders can gain a comprehensive view of liquidity dynamics, enabling them to make informed decisions regarding asset allocation and risk management. This combination allows for improved pricing models and better understanding of collateral movements, ultimately leading to optimised trading strategies and reduced costs. Furthermore, the enriched data landscape facilitates advanced analytics, empowering firms to identify trends and opportunities that may have otherwise gone unnoticed.
The role of repo data
In periods of heightened volatility and uncertainty 鈥� whether driven by geopolitical tension, economic policy shifts, or abrupt liquidity shocks 鈥� the value of repo data becomes even more pronounced. Analytics provide the early warning signals that enable institutions to anticipate changes in funding conditions, identify pressure points in collateral markets, and proactively adjust their strategies.
During such periods, access to detailed data across markets and instruments is essential for navigating price dislocations, liquidity fragmentation, and shifts in counterparty behaviour. Institutions that are blind to these dynamics risk being caught off guard by margin calls, collateral shortfalls, or deteriorating financing terms.
Moreover, volatile markets amplify the importance of monitoring and stress testing. By using analytics to simulate adverse scenarios and assess the resilience of funding arrangements, firms can avoid reactionary decision-making and maintain confidence with both clients and regulators.
Ultimately, in uncertain times, analytics shift from being a strategic advantage to a fundamental necessity. Those with access to repo data can act decisively; those without are left reacting to events they did not see coming.
A strategic necessity
In a collateral-constrained world, having visibility into a firm鈥檚 collateral usage and optimisation opportunities is fundamental. Analytics help firms understand what assets are cheapest to deliver, which can be re-used or substituted, and where opportunity costs can be minimised.
Smart collateral management enables better pricing, improved liquidity buffers, and stronger regulatory ratios. As regulations such as net stable funding ratio (NSFR) and liquidity coverage ratio (LCR) continue to evolve, the ability to monitor collateral eligibility, haircuts, and encumbrance across entities and time zones is no longer optional 鈥� it is integral to meeting compliance and minimising friction in day-to-day operations.
Participants who can access these insights gain a funding advantage. They are able to make faster, smarter collateral allocation decisions and can respond to changes in market demand or regulation with greater agility. Without this data, firms risk inefficiencies that directly impact profitability.
Forward-looking rate intelligence
In a market where financing rates are volatile and highly sensitive to supply and demand dynamics, having access to market analytics is critical. Participants must anticipate rate shifts, model future funding costs, and understand the impact of macro events on their books.
Data analytics can also uncover early signs of liquidity stress or market segmentation 鈥� insights that are vital for shaping internal pricing decisions and identifying the best execution route for trades. Predictive rate intelligence helps distinguish transitory price movements from structural changes in the market.
Those with access to forward-looking rate analytics can better position their liquidity, price transactions more accurately, and defend margins in competitive markets. Without this, pricing becomes reactive, and exposures remain unmanaged.
Understanding systemic risk
The repo market鈥檚 interdependence 鈥� spanning bilateral, triparty, and CCP-cleared activity 鈥� means that risk can propagate rapidly across the ecosystem. Analytics platforms capable of mapping these connections help firms to identify concentrations, monitor counterparty health, and simulate stress scenarios.
This visibility also enables better communication with regulators. Authorities increasingly expect market participants to demonstrate not just their own solvency, but also their understanding of interconnected exposures. Firms that rely on static or partial data are at a disadvantage when proving their resilience in both normal and stressed market conditions.
Participants need access to this level of risk intelligence not just to meet regulatory expectations, but to protect their own operational continuity. Those with this capability will be better prepared for systemic events and better aligned with regulators鈥� expectations for transparency and resilience.
Data silos undermine market efficiency
Many firms still suffer from fragmented data across trading desks, custodians, and platforms. This siloed architecture stifles visibility and increases operational risk. Standardisation, reconciliation, and integration of data are critical steps toward unlocking the power of analytics.
Integrated data not only reduces operational risk but also drives performance. It enables holistic portfolio views, precise counterparty risk assessments, and seamless interaction between front, middle, and back-office teams. By unifying data infrastructure, firms can move beyond compliance to truly strategic financing.
Market participants must insist on infrastructure that breaks down silos and provides a unified view of activity. Only then can firms harness the full power of analytics to drive efficiency and reduce cost.
A single view of cost
As repo desks increasingly merge with credit, rates, and equity financing functions, the need for cross-asset funding intelligence grows. Without access to analytics that unify funding costs across desks, firms cannot make informed execution or pricing decisions.
In the absence of a consolidated cost-of-funding model, firms risk under-pricing trades, over-allocating collateral, or missing opportunities for internal netting. Analytics platforms that provide a unified view of funding costs across instruments, clients, and currencies are essential to accurate decision-making.
Participants must be able to assess the true cost of financing transactions 鈥� across desks, clients, and channels 鈥� in order to choose the most efficient route to market. Analytics provide the tools to support internal transfer pricing, assess client profitability, and improve balance sheet deployment.
Client fairness requires transparency
In an environment of heightened regulatory scrutiny, treating customers fairly is more than a principle 鈥� it is a requirement. Analytics ensure that pricing reflects actual costs, not opaque estimates. Firms can demonstrate best execution, explain spreads, and justify rates to clients and supervisors alike.
Transparency in financing transactions builds trust and facilitates long-term client relationships. Moreover, it ensures compliance with conduct regulations such as the second Markets in Financial Instruments Directive (MiFID II), the 兔子先生Financing Transactions Regulation (SFTR), and various fair treatment mandates across jurisdictions. Without data to back up their pricing models, firms face higher compliance risk and reputational damage.
Access to market-based benchmarks, cost models, and profitability analysis supports transparent and defensible pricing. Participants without these capabilities expose themselves to conduct risk and erode client trust.
AI is only as good as the data
Artificial intelligence and machine learning are unlocking new insights in repo markets 鈥� from predictive pricing to collateral stress modelling. But these technologies depend on high-quality data and disciplined governance. Participants without clean, structured, and timely data will struggle to realise the benefits of these innovations.
Effective AI requires consistent data taxonomies, well-managed reference data, and rigorous data validation processes. Firms that invest in these foundational capabilities are not just future-proofing 鈥� they are creating new opportunities for efficiency, alpha generation, and differentiation.
Access to analytics tools is not just about visualisation 鈥� it is about building the data foundation that allows next-generation tools to function effectively.
Access to the future
In 2025 and beyond, access to repo data analytics will be a defining feature of successful market participants. From optimising liquidity to managing risk and ensuring client fairness, the benefits are clear.
Participants who lack these capabilities will find themselves outpaced by competitors, exposed to regulatory gaps, and unable to fully capitalise on market opportunities. The time for analytics as a luxury is over. It is now the price of admission into the next era of repo markets.
As markets continue to evolve and digitise, the ability to extract meaningful insights from financing data will determine not only who survives, but who thrives. Those who embrace analytics today will shape the repo market of tomorrow.
To navigate modern financial markets, all participants 鈥� buy side and sell side alike 鈥� must invest in and have access to robust repo data analytics. From liquidity optimisation to risk oversight, and from pricing transparency to market integration, analytics is the key to navigating the structural shifts reshaping repo markets globally.
No longer optional
Today鈥檚 repo market demands a level of precision and responsiveness that simply cannot be achieved without data analytics. Traditional practices based on static spreadsheets and fragmented systems have become a liability. Institutions must process vast quantities of trade, collateral, and counterparty data across a spectrum of instruments and venues. Without this capability, firms fall behind in pricing, risk control, and client service.
Data-driven strategies are no longer confined to high-frequency trading or sophisticated algorithmic functions. They are becoming the foundation for even the most basic financing decisions. Whether you are adjusting your intraday funding positions or rebalancing collateral pools, your ability to make informed decisions in a timely manner relies entirely on the availability and quality of your analytics infrastructure.
The strategic value of analytics is no longer in question. It is the cornerstone of operational agility, regulatory compliance, and competitive advantage. Market participants who lack access to these capabilities risk flying blind in a fast-moving and increasingly transparent environment.
Visibility across markets
When funding markets seize or dislocations emerge, access to analytics that span markets and instruments separates leaders from laggards. Historical events 鈥� from the 2019 US funding shock to the pandemic-induced stress of 2020 鈥� prove that those with broad-based monitoring, alerting, and forecasting tools are better positioned to manage through volatility.
Participants need to see where funding is flowing, what collateral is moving, and where stress is accumulating across books, venues, and counterparties. Holistic visibility empowers better decision-making, supports intraday liquidity management, and ensures that critical funding needs can be met even under pressure.
Crucially, visibility must transcend asset classes, legal structures, and geographies. The best-positioned firms integrate data not just from repo desks but also from derivatives, securities lending, credit, foreign exchange, and cash markets to identify correlations, detect arbitrage opportunities, and execute holistic liquidity strategies. As market participants face increasing globalisation and multi-currency collateralisation, such visibility becomes an enabler of scale and resilience.
The integration of securities lending and repo datasets creates a powerful synergy that enhances market insights and operational efficiency. By interlacing these datasets, stakeholders can gain a comprehensive view of liquidity dynamics, enabling them to make informed decisions regarding asset allocation and risk management. This combination allows for improved pricing models and better understanding of collateral movements, ultimately leading to optimised trading strategies and reduced costs. Furthermore, the enriched data landscape facilitates advanced analytics, empowering firms to identify trends and opportunities that may have otherwise gone unnoticed.
The role of repo data
In periods of heightened volatility and uncertainty 鈥� whether driven by geopolitical tension, economic policy shifts, or abrupt liquidity shocks 鈥� the value of repo data becomes even more pronounced. Analytics provide the early warning signals that enable institutions to anticipate changes in funding conditions, identify pressure points in collateral markets, and proactively adjust their strategies.
During such periods, access to detailed data across markets and instruments is essential for navigating price dislocations, liquidity fragmentation, and shifts in counterparty behaviour. Institutions that are blind to these dynamics risk being caught off guard by margin calls, collateral shortfalls, or deteriorating financing terms.
Moreover, volatile markets amplify the importance of monitoring and stress testing. By using analytics to simulate adverse scenarios and assess the resilience of funding arrangements, firms can avoid reactionary decision-making and maintain confidence with both clients and regulators.
Ultimately, in uncertain times, analytics shift from being a strategic advantage to a fundamental necessity. Those with access to repo data can act decisively; those without are left reacting to events they did not see coming.
A strategic necessity
In a collateral-constrained world, having visibility into a firm鈥檚 collateral usage and optimisation opportunities is fundamental. Analytics help firms understand what assets are cheapest to deliver, which can be re-used or substituted, and where opportunity costs can be minimised.
Smart collateral management enables better pricing, improved liquidity buffers, and stronger regulatory ratios. As regulations such as net stable funding ratio (NSFR) and liquidity coverage ratio (LCR) continue to evolve, the ability to monitor collateral eligibility, haircuts, and encumbrance across entities and time zones is no longer optional 鈥� it is integral to meeting compliance and minimising friction in day-to-day operations.
Participants who can access these insights gain a funding advantage. They are able to make faster, smarter collateral allocation decisions and can respond to changes in market demand or regulation with greater agility. Without this data, firms risk inefficiencies that directly impact profitability.
Forward-looking rate intelligence
In a market where financing rates are volatile and highly sensitive to supply and demand dynamics, having access to market analytics is critical. Participants must anticipate rate shifts, model future funding costs, and understand the impact of macro events on their books.
Data analytics can also uncover early signs of liquidity stress or market segmentation 鈥� insights that are vital for shaping internal pricing decisions and identifying the best execution route for trades. Predictive rate intelligence helps distinguish transitory price movements from structural changes in the market.
Those with access to forward-looking rate analytics can better position their liquidity, price transactions more accurately, and defend margins in competitive markets. Without this, pricing becomes reactive, and exposures remain unmanaged.
Understanding systemic risk
The repo market鈥檚 interdependence 鈥� spanning bilateral, triparty, and CCP-cleared activity 鈥� means that risk can propagate rapidly across the ecosystem. Analytics platforms capable of mapping these connections help firms to identify concentrations, monitor counterparty health, and simulate stress scenarios.
This visibility also enables better communication with regulators. Authorities increasingly expect market participants to demonstrate not just their own solvency, but also their understanding of interconnected exposures. Firms that rely on static or partial data are at a disadvantage when proving their resilience in both normal and stressed market conditions.
Participants need access to this level of risk intelligence not just to meet regulatory expectations, but to protect their own operational continuity. Those with this capability will be better prepared for systemic events and better aligned with regulators鈥� expectations for transparency and resilience.
Data silos undermine market efficiency
Many firms still suffer from fragmented data across trading desks, custodians, and platforms. This siloed architecture stifles visibility and increases operational risk. Standardisation, reconciliation, and integration of data are critical steps toward unlocking the power of analytics.
Integrated data not only reduces operational risk but also drives performance. It enables holistic portfolio views, precise counterparty risk assessments, and seamless interaction between front, middle, and back-office teams. By unifying data infrastructure, firms can move beyond compliance to truly strategic financing.
Market participants must insist on infrastructure that breaks down silos and provides a unified view of activity. Only then can firms harness the full power of analytics to drive efficiency and reduce cost.
A single view of cost
As repo desks increasingly merge with credit, rates, and equity financing functions, the need for cross-asset funding intelligence grows. Without access to analytics that unify funding costs across desks, firms cannot make informed execution or pricing decisions.
In the absence of a consolidated cost-of-funding model, firms risk under-pricing trades, over-allocating collateral, or missing opportunities for internal netting. Analytics platforms that provide a unified view of funding costs across instruments, clients, and currencies are essential to accurate decision-making.
Participants must be able to assess the true cost of financing transactions 鈥� across desks, clients, and channels 鈥� in order to choose the most efficient route to market. Analytics provide the tools to support internal transfer pricing, assess client profitability, and improve balance sheet deployment.
Client fairness requires transparency
In an environment of heightened regulatory scrutiny, treating customers fairly is more than a principle 鈥� it is a requirement. Analytics ensure that pricing reflects actual costs, not opaque estimates. Firms can demonstrate best execution, explain spreads, and justify rates to clients and supervisors alike.
Transparency in financing transactions builds trust and facilitates long-term client relationships. Moreover, it ensures compliance with conduct regulations such as the second Markets in Financial Instruments Directive (MiFID II), the 兔子先生Financing Transactions Regulation (SFTR), and various fair treatment mandates across jurisdictions. Without data to back up their pricing models, firms face higher compliance risk and reputational damage.
Access to market-based benchmarks, cost models, and profitability analysis supports transparent and defensible pricing. Participants without these capabilities expose themselves to conduct risk and erode client trust.
AI is only as good as the data
Artificial intelligence and machine learning are unlocking new insights in repo markets 鈥� from predictive pricing to collateral stress modelling. But these technologies depend on high-quality data and disciplined governance. Participants without clean, structured, and timely data will struggle to realise the benefits of these innovations.
Effective AI requires consistent data taxonomies, well-managed reference data, and rigorous data validation processes. Firms that invest in these foundational capabilities are not just future-proofing 鈥� they are creating new opportunities for efficiency, alpha generation, and differentiation.
Access to analytics tools is not just about visualisation 鈥� it is about building the data foundation that allows next-generation tools to function effectively.
Access to the future
In 2025 and beyond, access to repo data analytics will be a defining feature of successful market participants. From optimising liquidity to managing risk and ensuring client fairness, the benefits are clear.
Participants who lack these capabilities will find themselves outpaced by competitors, exposed to regulatory gaps, and unable to fully capitalise on market opportunities. The time for analytics as a luxury is over. It is now the price of admission into the next era of repo markets.
As markets continue to evolve and digitise, the ability to extract meaningful insights from financing data will determine not only who survives, but who thrives. Those who embrace analytics today will shape the repo market of tomorrow.
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