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MTS launches direct electronic dealer-to-client trading in Repo Contracts

First Published 18th September 2017

MTS enables the trading of bilateral and centrally cleared Repo contracts between sell-side and buy-side participants for the first time, in collaboration with the launch of LCH's Sponsored Clearing model from RepoClear

Oliver Clark, MTS

Oliver Clark, MTS

Access to electronic repo trading has previously been available to sell-side dealers, MTS' new Global Collateral Management (GCM) service will now offer the same features to the buy-side. GCM combines its D2D Repo and D2C Cash platforms to create a dedicated new section on MTS BondVision.

By adding RFQ trading functionality to its existing Repo technology, MTS has enabled sell-side dealers to trade with buy-side clients using familiar protocols, existing connectivity and automated straight through processing (STP), requiring limited development work on both sides.

Automated connectivity to LCH's recently launched Sponsored Clearing model gives Buy-Side Clients using this service, and the banks with whom they trade, the opportunity to offset and net balance sheet exposure improving access to liquidity whilst providing the added security inherent to CCP trading.

As part of London Stock Exchange Group (LSEG), and in anticipation of the Securities Financing Transactions Regulation (SFTR) expected in 2018, MTS has partnered with UnaVista, LSEG's European Trade Repository, to provide a solution to enable participants to meet their reporting requirements, if needed. UnaVista is an approved Trade Repository for the European Markets Infrastructure Reporting (EMIR) regulation and will be looking to provide a similar service for SFTR within their existing infrastructure.

Oliver Clark, Head of Product at MTS, comments: "MTS is uniquely positioned with a large universe of participants spanning sell- and buy-side institutions in the repo and cash bonds space. By bringing these together for the first time, GCM is helping to mobilise cash and collateral to where it is needed. In an environment where scarcity of collateral is increasingly an issue, and regulatory reporting requirements under SFTR are fast approaching the efficiencies that electronic trading brings are clear to see."