Clearstream and 360T Trading Networks AG are cooperating on the delivery of a streamlined triparty repo solution through 360T’s sophisticated front office facilities and Clearstream’s integrated collateral management platform and securities lending product portfolio, the Global Liquidity Hub. The partnership with 360T, the leading independent global provider of a multi-bank, multi-asset trading platform with buy-side customers in more than 50 countries, will strengthen Clearstream’s growing service offering for the non-financial sector and further enhance the service diversification for financial institutions.
The triparty repo service will be offered by 360T to “matching” trading partners from the platform’s extensive client database. The counterparties will become customers of Clearstream which will facilitate the entire triparty repo administration by using general collateral (GC) baskets of eligible collateral. The two companies expect the service to go live in Q1/2013.
The partnership between Clearstream and 360T is the latest addition to Liquidity Hub Collect, an increasingly important segment of Clearstream’s Global Liquidity Hub. The collaboration acts as a further channel for Clearstream customers to raise liquidity and maximise the use of their collateral. Furthermore, this cooperation provides a working model for trading platforms which can serve as a basis to create new, very short time-to-market trading functionalities. Liquidity Hub Collect effectively bridges the gap between automated repo trading platforms and complete settlement via straight-through processing (STP), as well as collateral allocation, optimization and substitution in a secure and efficient triparty environment.
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The extension of its important front-office functionalities towards a fully automated Triparty Repo offering incorporating the entire post-trade processing chain (including a fully automated collateral management function) will further strengthen the leading service offering of 360T. At the same time, Clearstream can further enlarge its available liquidity pool by reaching out to a wider customer base, including corporate clients, hedge funds and asset managers.
Stefan Lepp, Chief Executive Officer of the German central securities depository (CSD) Clearstream Banking AG and Head of Global Securities Financing at Clearstream, welcomed the collaboration with 360T which has made Clearstream and the Global Liquidity Hub even more attractive to buy-side customers looking for efficient, transparent and reliable Triparty Repo solutions. “Clearstream has long been committed to growth through strategic partnerships,” he said. “We are delighted to be working with 360T which has tremendous expertise in offering services to corporates and we are convinced that together we can add significant value for our mutual customers.”
“With the seamless integration of the 360T trading platform and the Global Liquidity Hub, we will enable our clients to benefit from a single trading venue for electronic trading. Moreover the whole product life cycle from price discovery to execution and settlement will be faster, more reliable and fully STP-supported”, added Carlo Kölzer, CEO at 360T. “360T is pleased to cooperate with an industry primus like Clearstream. We are sure that the new service will meet the demands of our clients to handle their collateralized deposits efficiently”, underlined Kölzer.
In 2012, the Global Liquidity Hub was awarded a top rating in the Global Custodian magazine’s Triparty Securities Financing Survey for the 12th successive year. The 2012 Global Investor/isf magazine Triparty Survey also placed the Global Liquidity Hub first with Clearstream winning the “Overall” category plus “Overall Europe, Middle East and Africa”, “Overall Asia”, “Overall Repo” and “Overall Securities Lending.”