Elixium’s MTF for Collateral and Secured Deposits Goes Live

Elixium addresses pricing and liquidity issues and offers direct participation to non-banks for the first time.

Elixium, a regulated Multilateral Trading Facility (MTF) for collateral and secured deposits, has announced the execution of its first collateral financing transaction between buy-side collateral and liquidity providers.

As cash management agent, Citibank executed on behalf of CME Clearing Europe, while Insight Investment executed on behalf of a UK Pension Fund. The trade took place on 6 October.

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Elixium Platform

Elixium is designed to specifically address the impact of regulation, balance sheet pressures and deteriorating levels of liquidity in the repo market by providing participants with collateralised liquidity on a fair, transparent, low-cost and equitable basis.

It was created in response to the market requirement for an all-to-all marketplace in collateral and secured deposits, as reported by Finance Magnates in April this year.

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Elixium enables institutions to gain standardised access to a diverse range of high-quality liquid assets that can be traded as collateral, on an all-to-all basis and supports pre-trade bi-lateral anonymity.

Counterparties

CME Clearing Europe is the first Central Counterparty (CCP) to trade collateral on the platform, and Elixium assists CME Clearing Europe with transparency and best price execution for its cash collateral investments.

Insight Investment, which executed the trade on behalf of a UK Pension Fund, also benefits from a wider pool of counterparties and the enhanced liquidity on the Elixium platform.

Nick McCall, CEO of Elixium, commented: ” Due to a historical lack of direct counterparty access for non-bank participants, a trade between a CCP and an asset manager or pension fund would have previously been highly inefficient and costly to facilitate. The completion of our first trade demonstrates the rate of change in the repo market and the benefits of facilitating electronic all-to-all collateral trading in a regulated environment.”

Elixium continues to onboard a diverse network of buy- and sell-side firms and is open to corporates, central banks, sovereign wealth funds, asset managers, pension funds, insurance companies, government institutions, hedge funds, brokers, dealers and banks.

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