“There has been increasing interest for US securities that have been building up in the vaults of Europe-based banks and financial institutions to be made available for financing purpose,” SIX explained.
SIX enables securities to be financed cross-currency or same-currency as it offers 14 denominations for repo transactions, including CHF, USD, EUR and GBP.
The US equity baskets will enhance SIX Repo’s ‘repo on demand’ service, enabling the financing of any combination of tailored baskets.
Ueli von Burg, head cash and collateral trading and management at Zürcher Kantonalbank, said: ”We welcome the wider range of the accepted collateral universe on the SIX trading and triparty platform. This is another push into the right direction that adds value to market participants and will generally enhance market liquidity.”
Nerin Demir, head SIX Repo, said: The need to provide a broader range of collateral for refinancing on the CO:RE trading platform already plays an important international role in the interbank market and naturally we want to meet the needs of our clients with this product basket expansion and enhancement.”