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
MiFID II unbundling compliance will be last-minute scramble for 85 percent
23 June 2017 | London | Reporter: Stephanie Palmer
Asset managers are cutting it fine in compliance with research unbundling rules under MiFID II, with 85 percent saying they expect to be compliant in Q4 2017 or later, ahead of the January 2018 deadline
ICMA: NSFR will make EU repo less attractive
23 June 2017 | London | Reporter: Drew Nicol
The association also point to increased automation of highly manual and labour-intensive processes of the market as a way to mitigate rising costs and create efficiencies
Caceis welcomes two new clients to TEEPI
23 June 2017 | Luxembourg | Reporter: Stephanie Palmer
Swiss Life Global Solutions, a Luxembourg-based insurance and wealth management provider, and European asset manager Amundi have joined the Caceis Tailored Electronic Exchange Platform for Investors
ECB to launch new faster payments system
22 June 2017 | Frankfurt | Reporter: Stephanie Palmer
The European Central Bank (ECB) is expanding its TARGET 2 instant payments system to facilitate retail payments throughout Europe
Clients demand innovation in custody
22 June 2017 | New York | Reporter: Stephanie Palmer
Custodians must embrace new technologies if they’re to survive in the digital age, according to a survey of sell-side executives by BNP Paribas Securities Services and TABB Group
Citi recruits Matthew Bax
21 June 2017 | London | Reporter: Barney Dixon
Citi has hired Matthew Bax as its Europe, Middle East and Africa (EMEA) head of sales for custody and fund services
Denise Voss re-elected as ALFI chair
21 June 2017 | Luxembourg | Reporter: Stephanie Palmer
The Association of the Luxembourg Funds Industry has re-elected Denise Voss to serve a further two years as chair of the board of directors
More news