European repo market size hits EUR 5 trillion - latest ISMA survey reveals strong growth

(LONDON, UK) The International Securities Market Association (ISMA) today released the results of its eighth semi-annual survey of the repo market in Europe, conducted on December 8, 2004. The repo market is pivotal to other financial markets, particularly those in bonds and derivatives, as it is the main source of financing for dealers. Repo, being a collateralized loan provides a secure means of lending and, for borrowers, an economic means of leverage.

The ISMA survey, which measured the amount of repo business still outstanding at that date from 76 participating institutions, shows that the lower boundary figure for the size of the market is now EUR 5 trillion. The actual size of the European repo market is clearly much larger, making it one of the largest financial markets in Europe.

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