e-Data Liquidity was developed in response to the increasing regulatory emphasis on maintaining liquidity and aims to allow participants a way of accurately gauging their asset portfolio’s ‘intrinsic liquidity’ in order to effectively price assets and allocate their funds, according to Euroclear.
In a brief on the launch, Euroclear explained that the product is aimed at the fixed income market because “measuring liquidity can prove particularly challenging for fixed income securities, which mainly operate over-the-counter and offer less transparency by nature than other markets”.
Stephan Pouyat, global head of funds and capital markets at Euroclear, said: “The current market climate is prompting investment managers, treasurers, risk managers, insurers, collateral takers, central counterparties and other buy-side institutions to better manage their asset portfolios and strengthen their balance sheets, including liquidity buffers.”
“e-Data is a modular tool and the liquidity module provides key indicators founded on our neutral settlement data and presented in its simplest form, relying on the infrastructure stamp of Euroclear. This first module, designed in close collaboration with Lyxor, focuses on supporting the management of fixed income and more specifically high quality liquid assets.”
Jean Sayegh, co-head of sovereign bonds investments at Lyxor Asset Management, added: “Lyxor has always helped its clients understand and adjust to a rapidly changing environment.”
“By teaming up with Euroclear we are participating in the current regulatory drive for market transparency and providing fixed income investors with an innovative tool helping them better manage their portfolios. This partnership confirms our expertise as an innovative and growing fixed income asset manager. By utilising the depth of Euroclear data, Lyxor creates value for its clients”.