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News 2026-10-07 05:01 UTC

Hedge funds warn BoE repo reforms could backfire

The hedge fund industry group AIMA has warned the Bank of England that proposed reforms to the gilt repo market could backfire and reduce liquidity. AIMA stated in a letter that implementing central clearing could create new vulnerabilities and expose investors to more volatility.

News 2026-10-07 05:00 UTC

Hedge Funds Warn BoE Repo Reforms Could Backfire

An industry group representing hedge funds has warned the Bank of England that proposed reforms to the repo market for short-term loans secured against UK government bonds could reduce liquidity during times of market stress.