The Swiss franc repo market – a successful first decade

July 2, 2009
Repo Meeting 2009, Lucerne

Download file now

The file can be downloaded with the button below.


This year the Swiss franc repo market celebrates ten years of existence – a first decade that can be regarded as a success story. Initially regarded with scepticism by the banks and conceived by the Swiss National Bank (SNB) as no more than a supplement to the monetary instruments of the time, within no more than a few years the Swiss franc repo market has evolved into the central trading place for secured Swiss franc liquidity, while repo business has become the main instrument of the SNB’s monetary policy.

Together with the private sector, the SNB has created a repo system that is a world leader. Apart from the principles of standardisation, automation, integration and openness, two factors play a key role in the Swiss franc repo market. One of these is the comprehensive reduction in risks with the simultaneous transfer of money and securities and two margin calls a day. The other is the fact that the central bank uses the same platform for its monetary policy as the commercial banks do for the interbank market.

Repo business has proved very flexible and useful for steering the three-month Libor. Even in the latest crisis, the SNB was well able to direct the Libor, using the repo instrument. In addition, the SNB has been able to use the platform for the rapid introduction of additional instruments, such as SNB Bills. The Swiss franc repo market also worked well in the crisis and banks with sufficient high-grade collateral were able to refinance themselves without any difficulty through this market.

Additional files

Related content


  • Thomas Jordan
    Member of the Governing Board

Your settings

Required: These cookies (e.g. for storing your IP address) cannot be rejected as they are necessary to ensure the operation of the website. These data are not evaluated further.
Analytics: If you consent to this category, data such as IP address, location, device information, browser version and site visitor behaviour will be collected. These data are evaluated for the SNB's internal purposes and are kept for two years.
Third-party: If you consent to this category, third-party services (used, for example, to add social multimedia content to the SNB's website) will be activated which collect personal data, process these data, disclose them abroad - worldwide - and place cookies. The relevant data protection regulations are linked in the 'Privacy statement for the website of the Swiss National Bank'.

Choose your preferred settings:

This website uses cookies, analytics tools and other technologies to provide requested features, content and services, to personalise the content shown, to provide links to social media, and to analyse the use of the website in anonymised form for the purposes of improving usability. Personal data are also disclosed abroad - worldwide - to video service providers and the analytics tools of these providers are used. More information is available under 'Manage settings'.