Clearstream and 360T Trading Networks AG are cooperating on the delivery of a triparty repo solution through 360T's front office facilities and Clearstream's integrated collateral management platform and securities lending product portfolio, the Global Liquidity Hub.
The partnership with 360T, the provider of a multi-bank, multi-asset trading platform, aims to strengthen Clearstream's service offering for the non-financial sector and enhance the service diversification for financial institutions.
The triparty repo service will be offered by 360T to "matching" trading partners from the platform's client database. The counterparties will become customers of Clearstream which will facilitate the entire triparty repo administration by using general collateral (GC) baskets of eligible collateral. The two companies expect the service to go live in Q1/2013.
The partnership between Clearstream and 360T is the latest addition to Liquidity Hub Collect, an increasingly important segment of Clearstream's Global Liquidity Hub. The collaboration acts as a further channel for Clearstream customers to raise liquidity and maximize the use of their collateral. Furthermore, this cooperation provides a working model for trading platforms which can serve as a basis to create new, very short time-to-market trading functionalities. Liquidity Hub Collect aims to bridge the gap between automated repo trading platforms and complete settlement via straight-through processing (STP), as well as collateral allocation, optimization and substitution in a triparty environment.
Stefan Lepp, Chief Executive Officer of the German central securities depository (CSD) Clearstream Banking AG and Head of Global Securities Financing at Clearstream, welcomed the collaboration with 360T: "Clearstream has long been committed to growth through strategic partnerships," he said. "We are delighted to be working with 360T which has tremendous expertise in offering services to corporates and we are convinced that together we can add significant value for our mutual customers."
"With the seamless integration of the 360T trading platform and the Global Liquidity Hub, we will enable our clients to benefit from a single trading venue for electronic trading. Moreover the whole product life cycle from price discovery to execution and settlement will be faster, more reliable and fully STP-supported", added Carlo Kölzer, CEO at 360T. "360T is pleased to cooperate with an industry primus like Clearstream. We are sure that the new service will meet the demands of our clients to handle their collateralized deposits efficiently." underlined Kölzer.