SIX Securities Services has enhanced its tri party offering by adding US Equity and Fixed Income securities for financing on the CO:RE Repo trading platform and for general tri-party collateral management.
Apart from the Swiss National Bank’s (SNB) high-quality liquid asset baskets (HQLA), which are traded as the market standard on the CO:RE trading platform via direct counterparties (tri-party), there has been increasing interest for US securities that have been building up in the vaults of Europe-based banks and financial institutions to be made available for financing purposes. Those securities can be financed cross-currency or same-currency as SIX currently offers 14 total currencies for repo transactions including CHF, USD, Euro and GBP.
The US Equity baskets will enhance the equity financing portfolio that SIX Securities Services offers covering the major European indices (SMI,DAX, CAC40, FTSE, MIB, IBEX) and also complementing SIX Repo’s “repo on demand” service enabling the financing of any combination of tailored baskets.
Ueli von Burg, Head Cash & Collateral Trading & Management at Zürcher Kantonalbank said, ”We welcome the wider range of the accepted collateral universe on the SIX trading and tri-party platform. This is another push into the right direction that adds value to market participants and will generally enhance market liquidity.”
According to Nerin Demir, Head SIX Repo Ltd, “The need to provide a broader range of collateral for refinancing on the CO: RE Trading Platform already plays an important international role in the interbank market and naturally we want to meet the needs of our clients with this product basket expansion and enhancement.”