AMC Repo Clearing launches triparty solution for corporate bond financing
31 July 2023 India
Image: AdobeStock/AdobeStock/bakhtiarzein
AMC Repo Clearing, the Mumbai-based clearing house, has established a triparty repo facility supporting repo financing against corporate bonds delivered as collateral.
The company is approved by the Reserve Bank of India to serve as a triparty repo agent and supported its first trades through the service on Friday at an event hosted by Securities and Exchange Board of India (SEBI), the Indian securities markets regulator.
Incorporated in April 2021, ARCL provides clearing and settlement for repo trades executed on repo market platforms at the National Stock Exchange and Bombay Stock Exchange.
Eight entities participated in repo transactions on the first day of the service, with total daily traded value reaching US$55 million (Rs 4800 million) according to the clearing house.
These participating entities were Aditya Birla Sun Life Mutual Fund, Axis Bank, East India Securities, HDFC Mutual Fund, Kotak Mutual Fund, State Bank of India, SBI Mutual Fund and Trust Financial.
AMC Repo is structured as a limited purpose (LP) clearing corporation and has been established with support from buy-side firms seeking an avenue to finance their corporate debt holdings and to improve liquidity in India’s corporate debt markets.
AMC Repo indicates that the service operates a settlement guarantee fund, principally by contributions from corporate bond issuers, thereby removing the need for bilateral counterparty exposure limits.
The company is approved by the Reserve Bank of India to serve as a triparty repo agent and supported its first trades through the service on Friday at an event hosted by Securities and Exchange Board of India (SEBI), the Indian securities markets regulator.
Incorporated in April 2021, ARCL provides clearing and settlement for repo trades executed on repo market platforms at the National Stock Exchange and Bombay Stock Exchange.
Eight entities participated in repo transactions on the first day of the service, with total daily traded value reaching US$55 million (Rs 4800 million) according to the clearing house.
These participating entities were Aditya Birla Sun Life Mutual Fund, Axis Bank, East India Securities, HDFC Mutual Fund, Kotak Mutual Fund, State Bank of India, SBI Mutual Fund and Trust Financial.
AMC Repo is structured as a limited purpose (LP) clearing corporation and has been established with support from buy-side firms seeking an avenue to finance their corporate debt holdings and to improve liquidity in India’s corporate debt markets.
AMC Repo indicates that the service operates a settlement guarantee fund, principally by contributions from corporate bond issuers, thereby removing the need for bilateral counterparty exposure limits.
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