J.P. Morgan sees first HKD triparty repo transaction
22 August 2012 Hong Kong
Image: Shutterstock
J.P. Morgan Worldwide Securities Services has executed Hong Kong’s first HKD triparty repo transaction between Bank of China and Barclays.
The bank and the Hong Kong Monetary Authority collaborated on a repo financing collateral management programme to facilitate repo financing transactions between members of Hong Kong’s Central Moneymarkets Unit (CMU) and international financial institutions. The programme launched in June.
It allows CMU members to accept a broad spectrum of international securities that are lodged with J.P. Morgan and other securities depositories as collateral.
It also gives international financial institutions that enter into repo financing transactions with CMU members access to liquidity for offshore CNY, EUR, HKD and USD in Hong Kong.
J.P Morgan developed a collateral management platform to support the programme. The trade between Bank of China and Barclays is the first one to be executed since the programme’s launch.
The trade “leveraged the cross-currency, cross-border and global capabilities of the repo financing programme and J.P. Morgan platforms by mobilising US Treasuries against HKD liquidity,” said J.P. Morgan in a statement.
Kirit Bhatia, head of technical sales for Asia (excluding Japan) at J.P. Morgan Worldwide Securities Services, said: “This is an exciting milestone for Hong Kong as it points to the new opportunities for local and global firms seeking to participate more deeply in the region’s rapidly developing capital markets. We look forward to playing a key role in the market’s ongoing development.”
The bank and the Hong Kong Monetary Authority collaborated on a repo financing collateral management programme to facilitate repo financing transactions between members of Hong Kong’s Central Moneymarkets Unit (CMU) and international financial institutions. The programme launched in June.
It allows CMU members to accept a broad spectrum of international securities that are lodged with J.P. Morgan and other securities depositories as collateral.
It also gives international financial institutions that enter into repo financing transactions with CMU members access to liquidity for offshore CNY, EUR, HKD and USD in Hong Kong.
J.P Morgan developed a collateral management platform to support the programme. The trade between Bank of China and Barclays is the first one to be executed since the programme’s launch.
The trade “leveraged the cross-currency, cross-border and global capabilities of the repo financing programme and J.P. Morgan platforms by mobilising US Treasuries against HKD liquidity,” said J.P. Morgan in a statement.
Kirit Bhatia, head of technical sales for Asia (excluding Japan) at J.P. Morgan Worldwide Securities Services, said: “This is an exciting milestone for Hong Kong as it points to the new opportunities for local and global firms seeking to participate more deeply in the region’s rapidly developing capital markets. We look forward to playing a key role in the market’s ongoing development.”
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