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Regulation

Hedge fund industry warns BoE repo reforms could increase market stress

Wednesday, October 7, 2026 · first reported by Hedgeweek

AIMA, the body representing the hedge fund industry, has written to the Bank of England this month warning that its proposed gilt repo reforms could lower liquidity and raise funding risks in times of market stress. The BoE is consulting on wider central clearing and minimum haircuts on repo trades that are not centrally cleared.

AIMA said clearing could push funds toward daily repo financing instead of arrangements such as two-week deals, leaving them more exposed to short-term funding disruption. Adam Jacobs-Dean, its global head of markets, urged the BoE to wait for evidence from US Treasury repo clearing, due next year. The BoE has not decided which proposals to adopt.

Also named
Bank of England
Asset class
Hedge funds
Geography
Europe

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