MarketAxess makes first repo trade between Citadel and J.P. Morgan
26 November 2019 New York
Image: Shutterstock
Electronic trading platform and market data provider MarketAxess has facilitated its first US repo trade through its automated confirmation engine between J.P. Morgan and Citadel.
According to MarketAxess, its trade confirmation engine provides the ability for buy- and sell-side clients to electronically confirm repos on T+0 and throughout the ‘complex’ transaction lifecycle.
Repo transactions are typically confirmed manually which can increase the risk of trade failures and cost. By providing an automated service, MarketAxess aims to reduce risks and encourage greater control over their post-execution processes.
Camille McKelvey, head of business development for MarketAxess post-trade solutions, said: “The repo market has historically experienced a long-standing lack of automation. As the Securities Financing Transactions Regulation and the Central Securities Depositories Regulation are raising the profile of risks associated with not having an efficient trade confirmation solution, more firms are now migrating to electronic solutions like ours.”
“Citadel and J.P. Morgan have led the way in the US by extending their existing use of MarketAxess’ trade confirmation engine outside of Europe, and are ultimately supporting a growing global community,” McKelvey added.
More than 50 firms currently utilise MarketAxess’ repo trade confirmation service and saw a 94 percent increase in the number of repo transactions confirmed in October, compared with year-end 2018.
According to MarketAxess, its trade confirmation engine provides the ability for buy- and sell-side clients to electronically confirm repos on T+0 and throughout the ‘complex’ transaction lifecycle.
Repo transactions are typically confirmed manually which can increase the risk of trade failures and cost. By providing an automated service, MarketAxess aims to reduce risks and encourage greater control over their post-execution processes.
Camille McKelvey, head of business development for MarketAxess post-trade solutions, said: “The repo market has historically experienced a long-standing lack of automation. As the Securities Financing Transactions Regulation and the Central Securities Depositories Regulation are raising the profile of risks associated with not having an efficient trade confirmation solution, more firms are now migrating to electronic solutions like ours.”
“Citadel and J.P. Morgan have led the way in the US by extending their existing use of MarketAxess’ trade confirmation engine outside of Europe, and are ultimately supporting a growing global community,” McKelvey added.
More than 50 firms currently utilise MarketAxess’ repo trade confirmation service and saw a 94 percent increase in the number of repo transactions confirmed in October, compared with year-end 2018.
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