10 October 2017
Reporter: Becky Butcher

ColleX executes first T+0 triparty collateral loan

ColleX has executed its first T+0 triparty collateral loan to help improve efficiency in securities finance trading.

The trade, conducted between Bank of America Merrill Lynch and ING Bank, with J.P. Morgan as collateral custodian, was executed using one of Collex’s 10 standardised baskets, which have been implemented across various triparty agents.

The transaction enabled the ColleX Trader to borrow a triparty basket of collateral and achieve 100 percent reuse, establishing the first loan of triparty collateral.

This transaction type will reduce collateral cost and settlement risk as the trade executed and settled within two hours on trade date.

Commenting on the transaction, Grant Davies, head of business development at ColleX, said: “The success of ColleX is being driven by a growing collateral market. More than $2.7 trillion of collateral is now managed by Europe, the Middle East and Africa triparty custodians with Seg IM, centrally cleared counterparty margin and collateralisation of credit lines increasing demand for efficient collateral solutions.”

“ColleX enables market participants to leverage triparty infrastructure, mobilise firm inventory and convert it into eligible collateral to meet these needs.”

Richard Pryce, ING’s co-head of global securities finance, added: “Given ING’s established reputation in securities financing and experience in triparty transactions for our clients, we see the benefits of electronic trading in terms of transparency and efficiency. We are pleased to be a part of this innovation.”

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
Margin rules depress derivative contract terms, survey finds
19 October 2017 | Brussels | Reporter: Jenna Lomax
Respondents to the commission’s quarterly survey on EU securities financing market liquidity cited the implementation of European Market Infrastructure Regulation (EMIR) margin requirements for non-cleared OTC derivative contracts as the main driv
AAOI and Euronav top FIS hot stocks lists
18 October 2017 | London | Reporter: Jenna Lomax
The Belgium-based operator of crude oil tankers and storage facilities, has been a regular feature on the list in the last month
LCH migrates to new Swiss reference rate
18 October 2017 | Zurich | Reporter: Jenna Lomax
Basler Kantonalbank, Credit Suisse and Zürcher Kantonalbank are due to be among the first financial services to clear using the new rate from December 2017
Broadridge completes blockchain bilateral repo pilot
18 October 2017 | New York | Reporter: Drew Nicol
The pilot, conducted in partnership with Natixis and Societe Generale, utilises distributed ledger technology in order to make complex processes “more secure, transparent and efficient”
Repo steps back from the brink
18 October 2017 | London | Reporter: Drew Nicol
The European repo market may be recovering from the severe lack of liquidity experienced at year end 2016, according the International Capital Market Association
Tradeweb launches first electronic swaption 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