Elixium, a regulated Multilateral Trading Facility (MTF) for collateral and secured deposits, has announced the execution of its first collateral financing transaction between buy-side collateral and liquidity providers.
Citibank, as cash management agent, executed on behalf of CME Clearing Europe, while Insight Investment executed on behalf of a UK Pension Fund. The trade took place on Thursday 6 October.
Elixium addresses the impact of regulation, balance sheet pressures, and deteriorating levels of liquidity in the repo market by providing participants with collateralised liquidity. It was created in response to the market requirement for an all-to-all marketplace in collateral and secured deposits.
Elixium enables institutions to gain standardised access to a range of liquid assets that can be traded as collateral, on an all-to-all basis, and supports pre-trade bi-lateral anonymity.
CME Clearing Europe is the first Central Counterparty (CCP) to trade collateral on the platform.