London Reporting House (LRH) announced that, along with a number of participating banks from Japan, Canada and Australia, it has launched a new solution which, for the first time, provides a transparent and deep view of the global repo markets.
Operating via a ‘give-to-get’ model, LRH ingests clients’ Securities Financing Transactions Regulation (SFTR) data, which is then anonymized, aggregated, enriched and analyzed to produce advanced analytics and insights for the front office, risk management and finance functions of banks and other financial institutions.
Danny Corrigan, CEO and co-founder at London Reporting House, said in a statement that there are several Tier 1 banks on board, and further financial institutions joining in the near future from the UK, Germany and Spain: “We now have the critical mass of data to provide a new level of transparency to the repo markets. The improved price, rate and volume data should enhance liquidity, provide greater confidence and a clearer understanding of prevailing risks.”
SFTR reporting has been in place since 2020 and to date more than 140,000 repo trades with a cash value of over €4 trillion are reported every day. LRH is repurposing client’s SFTR data to serve client firms and the wider industry and represents an important step in creating a truly data-driven repo market.
Godfried De Vidts, industry leader and senior advisor of the European Repo and Collateral Council at the International Capital Market Association, said in a statement: “More granular data will help participating banks better understand the market, supporting the move into data-driven trading. It will also provide insights, particularly in periods of volatility, contributing to financial stability in this ever more important short-term financing product.”
CEO of Kaizen, Dario Crispini, said in a statement: “Traditionally, there has been limited transparency in the repo markets. By working with LRH, clients can use information from their own reports to exploit the sunk costs of SFTR and be part of a solution that brings a new level of transparency to the industry.”