BrokerTec and MTS Add Spain Index to RepoFunds Rate

The new addition expands successful hedging and price discovery indexes.

BrokerTec, ICAP’s global electronic fixed income trading platform, and MTS, a fixed income electronic trading venue in Europe which is majority-owned by the London Stock Exchange Group, are further expanding the RepoFunds Rate (RFR) indices by adding a Spanish Repo index.

RepoFunds Rate is a series of daily European indices covering the German, French, Italian and Pan-European Repo markets which was launched in 2012.

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Each RepoFunds Rate index accurately reflects the effective cost of Repo funding for trades executed on the BrokerTec and MTS electronic trading platforms which typically have traded volumes of €230 billion ($256 billion) per day (single counted) between the two groups.

The indices are calculated and published by ICAP Information Services, the information division of ICAP.

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Oliver Clark, Head of Product at MTS, commented: “We continue to explore innovative solutions for our clients and the wider market and the RFR Spain is the next step in the evolution of the RepoFunds Rate suite. The RFR Spain recognises the significance of the Repo market as a key indicator of the secured cost of funding in Spain.”

RepoFunds Rate is based on four guiding principles: it is trade backed, has a transparent methodology, can be replicated with Repo transactions and has independent governance and trade sources.

RepoFunds Rate follows the IOSCO principles for financial benchmarks and was developed with the Repo community to be the first index to fully reflect the effective cost of secured funding in key eurozone countries.

Index symbols are: RFR Euro; RFR Germany, RFR France, RFR Italy and now RFR Spain. It is distributed broadly via third parties, including Reuters (REPOFUNDS) and Bloomberg (REPF) as well as being available via e-mail and FTP sources.

John Edwards, Managing Director for BrokerTec Europe Ltd, said: “Spain has a sizeable and significant Repo market and a major portion of this is transacted via the BrokerTec platform, with volumes regularly exceeding €20billion/day in nominal terms and support from both domestic and international counterparties. This launch follows the recently introduced Sterling Repo Index Rate (£RIR) in April 2016 for UK Gilt Repo and reflects the activity in the secured lending markets.”

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