SIX Securities Services, through its business unit SIX Repo, has seen an increasing demand for equity repo financing. Equity repos - baskets reproducing market indices - supplement the Swiss National Bank's (SNB) liquid asset baskets (HQLA), SNB HQLA 1 and 2, which are traded as the market standard on the CO:RE trading platform via direct counterparties (tri-party).
According to Nerin Demir, Head SIX Repo: "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."