SIFMA Statement on Liquidity Rules and Repo Market Volatility

Washington, D.C., December 6, 2019 – SIFMA today issued the following statement from President and CEO Kenneth E. Bentsen, Jr. on the potential need to modify rules governing liquidity, as noted by former member of the Board of Governors of Federal Reserve Daniel Tarullo yesterday at a Brookings Institute Symposium:

“We commend statements and recommendations made by former Governor Tarullo on recent repo market volatility, which merit review by policymakers. Specifically, his acknowledgement that certain aspects of the post crisis capital and liquidity rules, which include liquidity requirements around Recovery and Resolution Planning, the G-SIB Capital Buffer, the Enhanced Supplemental Leverage Ratio, the Liquidity Coverage Ratio and Liquidity Stress Testing (CLAR), may have played a part in recent repo market volatility which prompted the Federal Reserve to inject additional liquidity into the market on an ongoing basis. It is critical to the functioning of the capital markets that the Federal Reserve and other agencies comprehensively study and understand the implications of the current liquidity and capital rules on the repo market prior to layering on additional regulations, in particular the Net Stable Funding Ratio, and where appropriate re-calibrate the existing regulatory framework.”


SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit