BME Clearing live on CO:RE Repo
26 May 2023 Spain, Switzerland
Image: Victor Moussa/stock.adobe.com
SIX Repo has announced that BME Clearing, the clearing arm of Spanish market infrastructure operator BME Group which is majority owned by SIX, is now live on its CO:RE Repo market.
In June 2020, SIX completed the purchase of more than 93 per cent of BME Group for approximately €2.6 billion, with Madrid-based clearing house BME Clearing included under the transaction as the clearing division of BME Group.
SIX claims that on becoming a live participant on CO:RE Repo, BME Clearing is joining a market with a growing appetite for non-CHF currencies. “As a cash provider, BME Clearing can cater for this demand,” says SIX.
It notes that the Spanish clearing house has access to a highly liquid market with daily outstanding volume of close to CHF 70 billion (€70 billion) as well as access to all CO:RE Repo participants via a single master agreement, the Swiss Master Repo Agreement. This repo trading platform accommodates repo trades in CHF, EUR and USD and across a range of different baskets.
Christian Geiger, head of repo and collateral management sales at SIX, says: “As Euro cash provider, BME Clearing is joining our market at the right moment, as we have seen an increasing demand for euros – so BME Clearing is definitely adding value to our market and will be an attractive counterparty.”
BME Clearing’s head of clearing architecture Javier Aguila Llovera, says: “SIX Repo’s platform helps us to manage our regulatory requirements related to liquidity and credit risk more efficiently.
“We appreciate the collaboration and support we received from the SIX Repo team throughout the on-boarding process and now look forward to begin actively trading on CO:RE.’’
In June 2020, SIX completed the purchase of more than 93 per cent of BME Group for approximately €2.6 billion, with Madrid-based clearing house BME Clearing included under the transaction as the clearing division of BME Group.
SIX claims that on becoming a live participant on CO:RE Repo, BME Clearing is joining a market with a growing appetite for non-CHF currencies. “As a cash provider, BME Clearing can cater for this demand,” says SIX.
It notes that the Spanish clearing house has access to a highly liquid market with daily outstanding volume of close to CHF 70 billion (€70 billion) as well as access to all CO:RE Repo participants via a single master agreement, the Swiss Master Repo Agreement. This repo trading platform accommodates repo trades in CHF, EUR and USD and across a range of different baskets.
Christian Geiger, head of repo and collateral management sales at SIX, says: “As Euro cash provider, BME Clearing is joining our market at the right moment, as we have seen an increasing demand for euros – so BME Clearing is definitely adding value to our market and will be an attractive counterparty.”
BME Clearing’s head of clearing architecture Javier Aguila Llovera, says: “SIX Repo’s platform helps us to manage our regulatory requirements related to liquidity and credit risk more efficiently.
“We appreciate the collaboration and support we received from the SIX Repo team throughout the on-boarding process and now look forward to begin actively trading on CO:RE.’’
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