16 May 2017
London
Reporter: Drew Nicol
BrokerTec and MTS expands RepoFunds Rate suite
Fixed income trading platforms BrokerTec and MTS have added Dutch and Belgian repo indices to the RepoFunds Rate (RFR) suite.

The Dutch repo market transacts in excess of €11 billion nominal volume per day on BrokerTec, with an actively traded specials and general collateral (GC) market.

The Belgian repo market typically sees volumes in excess of €12 billion a day across specials and general collateral baskets.

Each RepoFunds Rate index reflects the specific effective cost of repo funding for trades executed on BrokerTec and MTS, which between them typically trade volumes of €230 billion per day, according to BrokerTec.

The RFR indices are calculated and published by BrokerTec’s parent company NEX Group’s NEX Data, which offers market intelligence and price information for over-the-counter (OTC) data via a third parties.

Both indices provide trade-backed data, which is used to measure the effective cost of funding within the Dutch and Belgian markets.

John Edwards, managing director for BrokerTec Europe, said: “The launch of both the Dutch and Belgian RepoFunds Rate complements the existing suite of RFR’s with both markets historically being significant in their contribution to the overall Pan Euro RFR.”

“This launch follows the Spanish RFR rolled out in September 2016 and continues to illustrate the level of interest and value now given to the funding facilitated through the use of the secured Repo markets.”

Oliver Clark, head of product at MTS, added: “We are constantly looking for innovative solutions for clients and the wider market and the further expansion of the RFR indices into the Netherlands and Belgium is another step in providing the kind of information the market needs.”

“These new RFR indices demonstrate that the repo markets are an important indicator of the cost of funding in local markets.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
GPP joins with Edgefolio for prime services
26 June 2017 | London | Reporter: Drew Nicol
GPP has partnered with Edgefolio to provide a capital introduction service to its prime brokerage clients
China’s bond market opened through Tradeweb
26 June 2017 | New York | Reporter: Drew Nicol
Northbound trading will begin in the initial phase, meaning overseas investors will be able to invest in the China inter-bank bond market
Former ITG sec lending trader banned for ADR misuse
23 June 2017 | Washington DC | Reporter: Drew Nicol
The charges follow ITG’s settlement in January when the broker-dealer agreed to pay more than $24.4 million over allegations of securities lending violations relating to the facilitation of naked short selling
ICMA: NSFR makes EU repo less attractive
23 June 2017 | London | Reporter: Drew Nicol
The association also point to increased automation of highly manual and labour-intensive processes of the market as a way to mitigate rising costs and create efficiencies
Brexit may push out small lenders
22 June 2017 | London | Reporter: Drew Nicol
Smaller beneficial owners are at risk of being pushed out the market by rising regulatory compliance costs, a revenue squeeze and Brexit
UK Money Markets Code to rebuild trust
22 June 2017 | London | Reporter: Drew Nicol
Industry representatives drafted the code in partnership with the Bank of England (BoE) to replace the previous guidance, which has been judged to be outdated
Quantitative easing going nowhere for now
22 June 2017 | Berlin | Reporter: Mark Dugdale
The European Central Bank (ECB) left interest rates unchanged earlier in June and expects them “to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases”