Traders resist the New York Fed's loan facility, hindering the Fed's efforts to ease pressure in the repo market.

BlockBeats news, on November 19, according to foreign media reports, traders rejected the New York Fed's proposal to use lending tools to ease market tensions. Bond traders resisted the Fed officials' urging to use key lending tools, making the Fed's efforts to alleviate the $12 trillion repo market pressure more complicated. Informed sources revealed that during a meeting last week, major traders representing Wall Street banks told officials that borrowing directly from the Central Bank still carries a certain stigma risk, which could be seen as a signal of problems. This is also one of the reasons why they are reluctant to use the Standing Repo Facility (SRF). Others pointed out that operational and balance sheet constraints make accessing the tool difficult.