Repo and Securities Lending are the engine of the financial markets. However regulatory initiatives, designed to improve the robustness of the of the financial markets, have made many transactions economically unviable. This has led to the normal liquidity channels for collateral markets becoming impaired.
Where does Elixium fit into all this?
Elixium is global All-to-All electronic trading venue, designed to provide a transparent and unbiased market place for trading collateral. It seeks to address the growing issues around liquidity which have been affected by on-going market evolution.
• Regulated as an MTF
• Diverse range of participants including corporate treasurers, CCPs, asset managers,
hedge funds, banks, government issuers, central banks, insurers, and agencies
• Designed to address the impact of regulation, balance sheet pressures and
deteriorating levels of liquidity in these markets
• An efficient conduit to raise/invest cash/collateral on a secured basis to manage
margin and cash-flow
• Uses standardised products (collateral baskets with a range of maturities and
currencies), standardised processes and documentation
• Settlement- bilateral, triparty or CCP
• Auction, CLOB, RFQ, IOI protocols
• Collateral upgrade/downgrade