Must admit, I find it hard to get worked up about the FRR right now - there's been barely any FRR swaps taken in days, so it would seem that the fixed-rate market is in fact setting the going rate at the current level, and the FRR as a system is mostly just taking a giant chunk of supply and keeping it safely tucked away out of sight so that it can't wipe away the limited amount of demand.

It sets a ceiling, and a slowly descending ceiling at that, but it's not really controlling the current rate. If it were 'improved' to be a well-defined rate set by its own rules and responsive to the reality of supply/demand rather the self-referential definition we have (which is the improvement I advocate), I can only expect we'd see USD swap rates crushed even closer to zero. Right now there just seems to be too much money chasing too few traders.

And this with the price of bitcoin finally showing some signs of rising... can't tell if that's a collective statement of "Bullshit, it's going to be back to bear-town any day now", or a sign that even with an uptick the supply of funding is outpacing the need for funding, or just a result of people saying "Trading? Not right now, it's christmastime".