Clearstream and Bloomberg give triparty repo a makeover
22 March 2013 Luxembourg
Image: Shutterstock
Clearstream is collaborating with Bloomberg to provide clients with an automated order routing service that delivers another way to access tri-party repo transactions.
The new service promises market participants faster and easier access to tri-party repo services in Clearstream’s integrated collateral and risk management environment, the Global Liquidity Hub, through the Bloomberg Professional service.
The new service will use Bloomberg's straight-through processing efforts, and “directly supports communication of transaction
information between tri-party market participants and their tri-party clearing banks,” said a statement from Clearstream. “Counterparties that participate in a triparty repo transaction will be able to initiate and execute the trade directly from the Bloomberg Professional service, before it is transmitted into Clearstream’s Global Liquidity Hub.”
The trade ticket may then be sent to Clearstream by Bloomberg via an automated SWIFT message—removing the need for additional connectivity to participate as a cash provider in Clearstream’s programme. Clearstream will continue to act as collateral agent and automatically handle the allocation, substitution and optimisation of collateral.
Stefan Lepp, head of Global Securities Financing at Clearstream, said the cooperation with Bloomberg further strengthens Clearstream’s Global Liquidity Hub as the company seeks to create links to electronic trading platforms and other service providers.
“I’m delighted that we are partnering with Bloomberg to make tri-party repos more accessible and more attractive as a collateral management tool,” he said. “This serves as an example of how our approach of creating strategic partnerships with top industry providers enhances opportunities for our clients.”
The new service promises market participants faster and easier access to tri-party repo services in Clearstream’s integrated collateral and risk management environment, the Global Liquidity Hub, through the Bloomberg Professional service.
The new service will use Bloomberg's straight-through processing efforts, and “directly supports communication of transaction
information between tri-party market participants and their tri-party clearing banks,” said a statement from Clearstream. “Counterparties that participate in a triparty repo transaction will be able to initiate and execute the trade directly from the Bloomberg Professional service, before it is transmitted into Clearstream’s Global Liquidity Hub.”
The trade ticket may then be sent to Clearstream by Bloomberg via an automated SWIFT message—removing the need for additional connectivity to participate as a cash provider in Clearstream’s programme. Clearstream will continue to act as collateral agent and automatically handle the allocation, substitution and optimisation of collateral.
Stefan Lepp, head of Global Securities Financing at Clearstream, said the cooperation with Bloomberg further strengthens Clearstream’s Global Liquidity Hub as the company seeks to create links to electronic trading platforms and other service providers.
“I’m delighted that we are partnering with Bloomberg to make tri-party repos more accessible and more attractive as a collateral management tool,” he said. “This serves as an example of how our approach of creating strategic partnerships with top industry providers enhances opportunities for our clients.”
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