First Middle East triparty cash repo trade settled
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First Middle East triparty cash repo trade settled 01 August 2011Luxembourg Reporter: Anna Reitman
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The National Bank of Abu Dhabi (NBAD) is the first Middle East financial institution accepting local counterparties as cash takers and Middle East assets, such as sovereign and corporate bonds out of the Gulf Cooperation Council (GCC) area, as collateral.
“Our first Middle East triparty repo trade will mark the kick-off point for the flow of liquidity within the region,” said Paul Voce, global head of repo NBAD. “It will also encourage the development of a true triparty repo refinancing market among local players and collateral.”
The first trade settled in early July through Deutsche Börse-owned Clearstream's infrastructure.
Stefan Lepp, member of the Executive Board of Clearstream and head of global securities financing, said: “This is a further important step towards the extension of our Global Liquidity Hub in this important region. This initiative supports our global strategy to further strengthen transparency, reliability and efficiency in the financing industry in close cooperation with market participants, regulators and central banks.”
Short selling and securities lending markets are part of the criteria required by MSCI to gain emerging market status, writes Data Explorers, adding that even in 2010 there were signs of momentum behind plans for the Qatar and UAE stock exchanges to open up securities lending.
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