Clearstream and ColleX collaborate to offer buy-side access to tri-…

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Clearstream, the international central securities depository (ICSD), and ColleX™ the collateral exchange platform, announced today a collaboration that brings together ColleX™’s visible pricing and liquidity for secured lending transactions with Clearstream’s simplified collateral management services.

With the introduction of the Clearstream Repurchase Conditions (CRC), Clearstream has greatly simplified tri-party repo and its settlement processes. The CRC sets out tri-party provisions and collateral acceptability in one single legal document and gives all participants instant access to a rich and diverse counterparty pool without the need for multiple bilateral legal agreements. More than 70 participants are signed to the CRC ranging from traditional dealer counterparts, to insurers and corporate treasurers looking for secured funding.

ColleX™, a centralised liquidity hub for collateral lending and repo transactions, was launched in Q3 2016 as part of the widening portfolio of electronic services developed by BGC Brokers L.P.’s FENICS business. The platform deploys proven trade negotiation technology via Auction, Order Book and Request for Quote. It supports Bank-to-Bank and Peer-to-Peer liquidity, with the addition of Agent Lender and IDBs to amplify liquidity globally.

“By coupling Clearstream’s capability to manage the operational lifecycle of tri-party repo transactions with the ColleX™ trading technology (Order Book, RFQ and Auction), ColleX™ is offering price discovery and best execution to further streamline and simplify a historically fragmented and difficult to access market,“ said Glen Stone, Head of ColleX™.

Marcel Naas, Head of Global Funding and Financing at Deutsche Börse Group, stated: “Our partnership with collateral exchange platform ColleX™ speaks to our commitment to further increase collateral efficiency by entering into successful collaborations. Providing our buy-side clients with a simplified access to tri-party collateral management, creating a single collateral pool and exploring re-use and netting opportunities are among the objectives of our new Global Funding and Financing product offering.”