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
Citi and CME Clearing launch collateral DLT platform
18 December 2017 | New York | Reporter: Zsuzsa Szabo
The blockchain software aims to reduce margin cost
South Africa extends code of conduct consultation deadline
18 December 2017 | Pretoria | Reporter: Jenna Lomax
The Registrar of Securities Services has proposed a new code of conduct for a renewed deadline for comment
Dubai Financial Market launches short selling
18 December 2017 | Abu Dhabi | Reporter: Jenna Lomax
Dubai Financial Market has launched a regulated short selling service after gaining approval by the Securities and Commodities Authority
J.P. Morgan and Citi collaborate on truePTS post-trade platform
15 December 2017 | New York | Reporter: Zsuzsa Szabo
The New-York-based startup processes ecosystem for the global $700 trillion derivatives market
SIFMA: US market requires improved CCP access
15 December 2017 | Washington DC | Reporter: Jenna Lomax
The Dodd-Frank Act has increased the need for US firms to have access to non US swaps trading venues and central counterparties, according to paper by FIA and SIFMA
France raises spectre of European financial transactions tax
15 December 2017 | Paris | Reporter: Jenna Lomax
French President Emmanuel Macron and several ministers have dismissed concerns over the negative effect of an EU financial transactions tax on securities lending revenue
Vekaria exits Credit Suisse
14 December 2017 | Dublin | Reporter: Zsuzsa Szabo
Head of Credit Suisse's Dublin branch Manish Vekaria has left the bank