State Street introduces buy-side P2P repo marketplace
03 March 2021 US
Image: Siarhei/adobe.stock.com
State Street has added a repo programme to its peer to-peer (P2P) product suite aimed at the buy-side.
Building from its established offerings in sponsored repo and securities lending, including P2P opportunities within its agency lending programme, the new repo facility aims to enable competitive financing costs across a broader range of collateral types and yield enhancement opportunities, compared to traditional repo markets.
The marketplace is accessible to non-financial corporates, asset owners, pension plans, regulated funds, insurance firms, and hedge funds, regardless of whether they are State Street custody clients.
Programme participants trade using a common master repurchase agreement, negotiating trade terms with approved counterparties within the program’s broader requirements guidelines.
Under the programme, State Street guarantees the payment obligations of cash borrowers to cash lenders following a default, thus facilitating bilateral trading by counterparties with varying credit and capital strength.
“We are pleased to continue building our buy-side securities financing tool-kit, delivering new solutions to meet evolving client needs,” says Travis Keltner, managing director at State Street global markets funding and collateral transformation.
“We look forward to growing this programme with new currencies, assets and collateral flexibility for our global client base. We have valued collaborating with clients and partners and plan to strategically position the programme with extended front-to-back capabilities, including collateral management.
“Ultimately, we look to align this market infrastructure as part of the evolving digital landscape.”
News of the launch follows the unveiling of State Street’s plan to offer triparty collateral services to buy-side clients for the first time ahead of the fifth phase of the Uncleared Margin Rules.
Staffan Ahnler, who leads the bank’s collateral initiatives, spoke exclusively to SFT to reveal his ambitious roadmap to achieving an end-to-end, holistic collateral offering.
Building from its established offerings in sponsored repo and securities lending, including P2P opportunities within its agency lending programme, the new repo facility aims to enable competitive financing costs across a broader range of collateral types and yield enhancement opportunities, compared to traditional repo markets.
The marketplace is accessible to non-financial corporates, asset owners, pension plans, regulated funds, insurance firms, and hedge funds, regardless of whether they are State Street custody clients.
Programme participants trade using a common master repurchase agreement, negotiating trade terms with approved counterparties within the program’s broader requirements guidelines.
Under the programme, State Street guarantees the payment obligations of cash borrowers to cash lenders following a default, thus facilitating bilateral trading by counterparties with varying credit and capital strength.
“We are pleased to continue building our buy-side securities financing tool-kit, delivering new solutions to meet evolving client needs,” says Travis Keltner, managing director at State Street global markets funding and collateral transformation.
“We look forward to growing this programme with new currencies, assets and collateral flexibility for our global client base. We have valued collaborating with clients and partners and plan to strategically position the programme with extended front-to-back capabilities, including collateral management.
“Ultimately, we look to align this market infrastructure as part of the evolving digital landscape.”
News of the launch follows the unveiling of State Street’s plan to offer triparty collateral services to buy-side clients for the first time ahead of the fifth phase of the Uncleared Margin Rules.
Staffan Ahnler, who leads the bank’s collateral initiatives, spoke exclusively to SFT to reveal his ambitious roadmap to achieving an end-to-end, holistic collateral offering.
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