Clearstream and Bloomberg partner on tri-party repo processing

21 March 2013

Clearstream today announced a collaboration with Bloomberg to provide clients an automated order routing service that delivers an additional means of accessing triparty repurchase agreements (repo) transactions. The new service offers market participants faster and easier access to triparty repo services in Clearstream’s integrated collateral and risk management environment, the Global Liquidity Hub, through the Bloomberg Professional service.

The new service leverages Bloomberg’s straight-through processing (STP) efforts, which automates the affirmation and processing of triparty repo transactions. This service directly supports communication of transaction information between triparty market participants and their triparty clearing banks. Counterparties that participate in a triparty repo transaction will be able to initiate and execute the trade directly from the Bloomberg Professional service, before it is transmitted into Clearstream’s Global Liquidity Hub. The trade ticket may then be sent to Clearstream by Bloomberg via an automated SWIFT message, thereby removing the need for additional connectivity to participate as a cash provider in Clearstream’s programme. Clearstream will continue to act as collateral agent and automatically handle the allocation, substitution and optimisation of collateral with real-time reporting.

Stefan Lepp, Head of Global Securities Financing, Clearstream, said the cooperation with Bloomberg further strengthens Clearstream’s Global Liquidity Hub as the company seeks to create links to electronic trading platforms and other service providers. “I’m delighted that we are partnering with Bloomberg to make triparty repos more accessible and more attractive as a collateral management tool,” he said. “This serves as an example of how our approach of creating strategic partnerships with top industry providers enhances opportunities for our clients.”

George Harrington, Global Head of Fixed Income Trading, Bloomberg LP, said: “This collaboration with Clearstream is a game changer for the industry and demonstrates Bloomberg’s commitment to provide effective, transparent execution and post-trade management solutions across all asset classes. We look forward to expanding the level of cooperation with Clearstream to deliver greater processing efficiencies and stability to financial markets.”

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