Members of the Liquidity Alliance are to be able to offer the buy-side the option to collateralise tri-party repos with banks through 360T, a platform for foreign exchange and money markets trading.
Buy-side customers will be able to trade tri-party repos via the same 360T frontend they use for FX and other money market trades. After confirmation on the platform, all relevant data will automatically be routed straight through to the collateral service of the local member of The Liquidity Alliance, minimising the back office burden and operational risks.
The Liquidity Alliance was formed in 2013 by five market infrastructures: ASX, a financial infrastructure in Australia; Cetip, a central securities depository specialising in OTC derivatives, in Brazil; Clearstream, the German central securities depository and Luxembourg-based international central securities depository; Iberclear, the central securities depository in Spain and Strate, the central securities depository in South Africa.
Associated members are CDS, the central securities depository in Canada, SGX, a financial infrastructure in Singapore and VPS, the central securities depository in Norway.
Mathew Kuppe, managing director, 360T Asia Pacific, commented: “360T already has buy-side customers in all domestic markets of members of The Liquidity Alliance. The Liquidity Alliance will now have the option to offer these customers the benefit of collateralised trading which was previously only available to financial institutions, via an integrated front end.”
360T has been in a partnership with Clearstream to offer tri-party repo trading for banks and the buy-side via the Global Liquidity Hub since 2013. The acquisition of 360T in October 2015 by Deutsche Börse Group, of which Clearstream is a member, now enables Clearstream to extend its joint services with 360T to all members of The Liquidity Alliance in a white labelled manner.
The Liquidity Alliance members will independently review local regulatory conditions and demand from the buy-side for the service.