Members of The Liquidity Alliance, including ASX (Australia), Cetip (Brazil), Clearstream (Luxembourg), Iberclear (Spain) and Strate (South Africa), will be able to give the buy-side an option to collateralise triparty repos with banks through 360T, a platform for foreign exchange and money markets trading, which was recently acquired by Deutsche Boerse AG (ETR:DB1).
Buy-side customers will be able to trade triparty repos via the same 360T frontend they use for Forex 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. This leads to reduction of the back-office burden and operational risks.
360T has been in a partnership with Clearstream to offer triparty repo trading for banks and the buy-side via the Global Liquidity Hub since 2013. The deal with 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.
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.”
You can read the official announcement from Deutsche Borse by clicking here.