London Reporting House (LRH), alongside banks from Japan, Canada and Australia, has launched a new solution designed to provide a view of the global repo markets.
Operating via a ‘give-to-get’ model, LRH uses clients’ Securities Financing Transactions Regulation (SFTR) data to produce analytics and insights for the front office, risk management and finance functions of banks and other financial institutions, the firm says.
SFTR reporting has been in place since 2020. Banks, asset managers, hedge funds and other firms that trade in the UK and EEA repo markets are now mandated to report all of their transactions to their respective regulators via trade repositories.
LRH is repurposing clients’ SFTR data to serve client firms and the wider industry, and aims to create a “truly data-driven” repo market.
Danny Corrigan, CEO and co-founder of London Reporting House, says: “We are delighted to launch this innovative new solution with several Tier 1 banks on board, and further financial institutions joining in the near future from the UK, Germany and Spain.
“We now have the critical mass of data to provide a new level of transparency to the repo markets. The improved price, rate and volume data should enhance liquidity, provide greater confidence and a clearer understanding of prevailing risks.”
Commenting on the launch, Godfried De Vidts is encouraged by this new market-led initiative. He adds: “More granular data will help participating banks better understand the market, supporting the move into data-driven trading. It will also provide insights, particularly in periods of volatility, contributing to financial stability in this ever more important short-term financing product.”
CEO of Kaizen Dario Crispini comments: “Traditionally, there has been limited transparency in the repo markets. By working with LRH, clients can use information from their own reports to exploit the sunk costs of SFTR and be part of a solution that brings a new level of transparency to the industry.”
