““The repo market has since emerged as a crucial battleground of global financial reform. The market’s complex web of transactions is, in the words of Lord Turner, formerly a top UK regulator, potentially very risky because of the “cat’s cradle” of interwoven relationships it creates. Much of the sector has already been reformed, especially in the part known as the “triparty” repo market. There, regulators have largely eliminated the temporary credit provided to other banks by JPMorgan and Bank of New York Mellon, the two triparty clearing banks.””
