U.K. Treasury publication GTNews features two articles on "repos" or repurchase agreements. The first "Repo and the Repo Market," by Richard Comotto of the ICMA Centre, University of Reading, says, "The repo market has seen increasing interest from corporates in recent years, particularly from those looking to reduce their exposure to the banking sector. But new regulations threaten to stall the market, or worse." The second, "Repo for Treasurers," by Tak Eng of RBS Greenwich Capital, explains, "Corporate treasurers may wish to consider making more use of the repo markets as an alternative investment vehicle. They can offer a low-cost, low-risk, flexible and efficient way for corporates to invest spare cash for short periods." GTNews' first piece adds, "Over the past few decades, repo has become the key short-term funding instrument of banks and a growing home for the liquid assets of non-bank financial and corporate investors. Repo also performs a variety of other functions essential to the efficiency of the financial markets. Also, because of its collateralised nature, regulators have promoted repo as a means of mitigating risk." The second piece adds, "Repo markets are extremely important. They are large and highly liquid. In the US, for example, the daily average outstanding amount is some US$4.5 trillion , while in Europe, the total value of repos is over E6 trillion. This high liquidity reflects the vital role repo plays as a lubricant for the financial system. It is used by central banks to manage liquidity, by brokers and dealers to provide short-term financing for their everyday operations, and by investors and corporates to manage cash."

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