Zürich
09 May 2017
Reporter: Drew Nicol

SIX expands equity repo baskets list


SIX Repo has launched two new European equity index baskets for its CO:RE trading platform.

The CAC 40 and FTSE 100 baskets are open to equity repo financing and will be added to existing baskets list that track the Swiss SMI 20, the German DAX 30, the MIB 40 and the Spanish IBEX 35 index.

The decision to launch fresh equity repo baskets was driven by the increasing demand for equity repo financing, according to SIX.

Equity repos, baskets reproducing market indices, supplement the Swiss National Bank’s (SNB) high-quality liquid asset (HQLA) baskets, SNB HQLA 1 and 2, which are traded via counterparties on the CO:RE trading platform.

Nerin Demir, head of SIX Repo, commented: “Different banks and non-bank financial institutions in the repo market have an interest in taking in more equity as collateral due to its liquidity, availability and for the diversification factor.”

“There is a clear trend for equity and fixed income financing desks to come closer together and work towards a more singular view of the available collateral pool. This in turn attracts new participants, the latest of which is Natixis—the first of many new participants we are looking forward to welcoming aboard.”

Ian Beattie, head of client development on the equity finance desk at Natixis and SIX client, said: “The straight-through processing capabilities of SIX, combined with the access to a broad range of counterparties makes the platform an attractive financing tool.”

“Easy to use, it can cater for large volumes of transactions and is particularly supportive for equity repo transactions. We are looking forward to building balances and working with counterparties on CO:RE trading platform.”

Another SIX Repo client, Thomas Roth, head of cash and collateral management at Bank Vontobel, added: “Having as many products as possible on a standardised platform like SIX Repo’s CO:RE trading platform provides participants with the necessary flexibility to cover their needs and supports increasing volumes to fulfill the financing requirements within different asset classes.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Harnessing data can keep securities secure
18 October 2017 | Toronto | Reporter: Stephanie Palmer
Securities transactions are just as susceptible to cybercrime as payments, and proper use, and protection, of data is key to managing that risk, Sibos attendees have heard
Banks cautiously optimistic about impact of tech
18 October 2017 | Toronto | Reporter: Theo Andrew
According to the BNY Mellon research, Rethinking the Client Payment Experience, security and reliability are viewed as instrumental in creating the ideal payment experience
BNY Mellon and HSBC sign up to Algomi’s Honeycomb
18 October 2018 | New York | Reporter: Jenna Lomax
The collaboration is expected to bolster fixed income market liquidity by giving both BNY Mellon and HSBC clients the ability to make select holdings information available anonymously through the new solution
Broadridge completes blockchain bilateral repo pilot
18 October 2016 | New York | Reporter: Theo Andrew
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”
Industry torn on which city will replace London as post-Brexit financial hub
17 October 2017 | Toronto | Reporter: Stephanie Palmer
Frankfurt is set to displace London as a global financial centre after Brexit, according to an audience poll at Sibos 2017, however the session’s panellists were not convinced by the results
Quick response times key to managing reputational risk
17 October 2017 | Toronto | Reporter: Stephanie Palmer-Derrien
Reputational risk should be taken as seriously as any other type of risk, and measured, organisation-wide, and well-planned responses are key to minimising it, heard panel attendees at Sibos 2017
NEX partners with Baton Systems
17 October 2017 | London | Reporter: Jenna Lomax
The agreement means Baton Systems will be the first third party to provide its clients with services through NEX’s Infinity solution
More news