Fed discount window could resolve CCP collateral liquidity concerns, say clearers

US regulatory concerns about liquidity of government securities collateral could be resolved by access to the Fed’s discount window, CCP officials say

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Central counterparties (CCPs) should be allowed to access the Federal Reserve's discount window, a move that would help resolve US regulatory concerns about the liquidity of US Treasury collateral, clearers say.

The liquidity of US government securities has been an issue since August, when the Commodity Futures Trading Commission (CFTC) published proposals meant to bring US clearing house rules into line with international standards. The proposed rule states that CCPs can only count liquid

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