The move could provide significant savings for banks that have faced increased regulatory costs to trade in the balance sheet-intensive repo market.
Banks are attempting to find ways to reduce their capital-intensive repo trading activity in order to avoid penalties.
The firm will begin an orderly wind-down of the business, which is anticipated to take up to 12 months to complete.
Regulation and collateral costs have made the cleared derivatives market much more attractive for the buy-side, but what else will it take for them to voluntarily take part?
The provision exempts cash placed in central bank reserves by custodians from the calculation of the supplementary leverage ratio.
The move to withdraw from GCF repo settlement will affect around 30 broker-dealer clients.
The Basel Committee has received mounting pressure to review its capital framework.