Insight Investment MMF connects to LCH RepoClear 20 September 2019London Reporter: Drew Nicol
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Insight Investment, an asset manager owned by BNY Mellon, has introduced a money market fund (MMF) it manages to LCH’s RepoClear service.
The Insight GBP Liquidity Fund, which holds £24 billion as of 31 July, this week completed its first repo trade cleared by the RepoClear Sponsored Clearing service, which is operated by global clearinghouse LCH.
The service provides buy-side market participants with access to central clearing, a facility which until recent years has been largely restricted to the banking community.
According to Insight, the connection of the MMF to LCH will provide its investors with access to a fresh pool of liquidity and marks “a further milestone in the structural development of the liquidity market”.
In 2017, Insight became the first asset manager to clear on LCH’s RepoClear service, acting on behalf of a UK pension fund client.
Chris Brown, head of money markets at Insight Investment and portfolio manager of the fund, said: “This development is significant for money market funds, which use repo as an asset class and can now access a wider pool of liquidity. The ability of the buy side to clear with a central clearing counterparty deepens and diversifies the available sources of repo liquidity.”
Bruce Kellaway, head of rates, securities and collateral at LCH, added: “We are delighted that Insight’s money market fund has cleared its first repo trade as a sponsored member of RepoClear. Sponsored Clearing enables buy-side firms to reduce their risk and access the additional repo capacity unlocked through balance sheet netting.”
“This demonstrates how clearing benefits both the buy- and sell-side and supports increased market liquidity for all.”
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