Repo Market Set for Volatility in Late Clearing Push, CIBC Says

Repo Market Set for Volatility in Late Clearing Push, CIBC Says US funding markets risk facing a volatile, last-minute “scramble” to meet a key 2027 deadline for mandatory central clearing of daily transactions, strategists at Canadian Imperial Bank of Commerce warned. Just eight months ahead of the June 2027 deadline, clearing volumes of repurchase agreements have flattened after slowing in the first months of the year, according to a report from the International Swaps and Derivatives Association. The drop is “deeply disheartening,” CIBC strategists led by Michael Cloherty wrote in a note Friday.