According to Jin10, the Alternative Investment Management Association warned the Bank of England that its proposed reforms could backfire, reducing liquidity in the short-term lending market backed by U.K. government bonds, or the repo market, when markets come under pressure. The association said central clearing in the repo market could create new vulnerabilities and expose investors to greater volatility risk. It added that the warning was more direct than its response last year to the Bank of England's initial reform proposal, which it said had major structural problems. The Bank of England is seeking views on reforms to strengthen the resilience of the U.K. government bond repo market, including expanding central clearing and setting a minimum haircut for non-centrally cleared repo trades.