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Russia conducts first survey of its repo market

The Russian Repo Council conducted it first biannual survey of the Russian repo market December 1, 2009, to May 31, 2010.

The survey was designed with the help of the European Repo Council, which has conducted biannual repo surveys since 2001. No comparable surveys are conducted in the U.S.

According to the 68 financial institutions that responded to the Russian survey, the value of outstanding repo loans and borrowings on June 1, 2010, was about $25 million, which is inflated by some double counting. Almost half of the collateral was corporate bonds, followed by 30 percent government bonds and 22 percent stocks.

The top 10 repo providers made up about 70 percent of all repos in the market, the council reported. Overnight repos accounted for 64.5 percent of total repos.

Only 12 percent of the repo transactions were conducted with people outside Russia. The council expects that share to grow as Russia’s repo market matures and meets international standards.

The National Securities Market Association in Russia has been developing a repo market in Russia since 2003, according to the council’s report. Improvements in legal and regulatory frameworks are permitting greater repo volumes, the report said.

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