FX
liquidity swap lines are in place.
Not exact matches
In response, the Fed reduced the federal funds rate to essentially zero by mid-December, instituted
swap lines to provide dollar
liquidity to foreign central banks, added new
liquidity facilities to target specific sectors of the shadow banking system and began to expand its balance sheet through asset purchases.
Immediate credit challenges include potential draws on
liquidity associated with rating triggers embedded in the city's letters of credit (LOCs), standby bond purchase agreement (SBPA),
lines of credit, direct bank loans, and
swaps [Oops — banks can and should pull the plug].
-- For now, the press is reporting that central banks are mulling dollar supply via bilateral
swap lines in the case of a
liquidity squeeze upon a «no» vote.
With regards to the London market, there are a number of platforms for specific product
lines (foreign exchanges,
swap contracts, equity derivatives, etc.) to facilitate compensation, settlements of trades among market players, and volumes to ensure
liquidity.