JP Morgan clients suffer in interbank repo basis blowout
Suspension of DTCC service leaves market "in uncharted territory"
The suspension of the Depository Trust & Clearing Corporation's (DTCC) interbank repo clearing service last week has seen borrowing costs jump for banks that use JP Morgan to clear their trades rather than rival clearer, BNY Mellon.
The DTCC's service allowed participants in the market to trade with each other, regardless of which of the two big clearing banks they used. It was suspended after a proposed overhaul – prompted by regulatory concerns about intraday credit risk within the service –
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