The ECB released its Euro money market survey for 2012. The observations are quite interesting. Both the unsecured and secured money market daily turnover is lower in 2012.

The unsecured market structure has changed in 2012 with trades moving mainly at the national level while intra-euro lending dropped significantly:

 

while market participants do not regard the market as efficient and liquid:

 

The secured market structure on the other has held tight:

 

probably because trades are moving through central counterparties, thus limiting exposure for lenders:

 

Another factor is the fact that maturities are shorter, both in the overall market:

 

and the bilateral repos (which consist the largest part of the market):

 

When one takes a look at the total market structure it’s obvious that both the secured and unsecured market is dominated by the top 20 credit institutions:

 

As a result, developments such as the fall in intra-euro unsecured lending should not be considered marginal but significant, since most of the remaining trades are probably accounted for by these top-20 institutions and do not change much.