Fed's Logan says Fed open market operations would benefit from voluntary central clearing

Dallas Fed President Lorie Logan said moving central bank monetary-policy operations to central clearing would likely benefit the financial system. The statement is constructive for market plumbing/liquidity and could be viewed as modestly positive for cleared credit and rates exposures, though it does not specify timing or policy changes.

Analysis

Dallas Fed President Lorie Logan said moving central bank monetary-policy operations to central clearing would likely benefit the financial system. The statement is constructive for market plumbing/liquidity and could be viewed as modestly positive for cleared credit and rates exposures, though it does not specify timing or policy changes.