04 August 2017
New York
Reporter: Jenna Lomax

Electronic repo trading on the rise, says Bruni

Interest in electronic repo trading is increasing as regulations make the business more expensive to conduct, according to Tradeweb’s managing director of European markets, Enrico Bruni.

“Many factors” — but particularly the new margin requirements for over-the-counter (OTC) derivatives—are driving the trend.

The rules, introduced by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) that require non-cleared OTC derivatives business to post and collect initial margin, are “driving dealers and clients to look for an electronic solution for repo trading”.

It’s not just new regulations that are pushing the market toward electronic trading. The International Capital Market Association reported in June that the changing nature of the underlying market, with a trend toward smaller trade sizes and more rapid turn-over of dealer positions, is making sourcing supply more difficult.

“Buy-side clients are facing increasing pressure to prove best execution, and to optimise the performance of their portfolios.” said Bruni. “On the sell side, firms have fewer resources at hand and are looking for efficiencies in order to sustain the business.”

Bruni argues that historical repo trading resources have been detrimental to the industry but electronical repo trading “is changing that dynamic.”

The full interview with Enrico Bruni will be available to read in the next issue of Asset Servicing Times, published on 8 August.

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
Tradeweb launches first electronic swap trade on TW SEF
17 October 2017 | New York | Reporter: Jenna Lomax
The trade, which was executed by asset management firm, Garda Capital, and processed through MarketWire, officially marked the launch of swaptions trading on the TW SEF
BlackRock sees lending revenue growth
17 October 2017 | London | Reporter: Drew Nicol
BlackRock saw its securities lending revenue hit $150 million in Q3, compared to $142 during the same period in 2016
Clearstream and dwpbank sign T2S agreement
16 October 2017 | Luxembourg | Reporter: Jenna Lomax
Though the length of contract has not been disclosed, the partnership will provide dwpbank with centralised access to the T2S market via a single platform
Nex appoints new CEO
16 October 2017 | London | Reporter: Jenna Lomax
Ken Pigaga, who was previously global COO at the fintech company, will begin his new role this month, but will remain as a director on the NEX board
Is the sec lending industry experiencing evolution or revolution?
13 October 2017 | London | Reporter: Jenna Lomax
The securities lending industry is facing an evolution, as opposed to a revolution, attendees heard at the ISLA 8th Annual Post Trade Conference
Brexit: next three years ‘crucial’ for sec lending industry
13 October 2017 | London | Reporter: Jenna Lomax
Panellists at the ISLA 8th Annual Post Trade Conference discussed how the UK’s exit will affect the securities lending industry
The industry needs to ‘embrace’ fintech
13 October 2017 | London | Reporter: Jenna Lomax
The securities lending industry needs to embrace fintech, according to a panellist at ISLA 8th Annual Post Trade Conference