In money markets both inside and outside Japan, repos have been a major instrument in both borrowing and lending of cash and securities. With the recent global financial crisis in mind, discussions are taking place at international forums such as the G20 and the Financial Stability Board (FSB) on how to further increase the stability and transparency of repos and securities lending. Within Japan, it is vital to improve the efficiency of repos and speed up settlement even further, since there is demand for a facility that allows the rapid execution of same-day settlement of repos to shorten the Japanese government bond (JGB) settlement cycle. The Bank of Japan has been participating actively in these discussions and will continue to contribute, as the central bank, to further improvement of the stability and efficiency of repos and development of the repo market.
