Collateral Exchange platform ColleX announced it has executed its first T+0 triparty collateral loan, bringing improved efficiency to securities finance trading. The trade was conducted between Bank of America Merrill Lynch and ING Bank, with J.P. Morgan as collateral custodian.
It was executed using one of ColleX’s 10 standardized baskets, which have been implemented across the major triparty agents. The transaction enabled the ‘ColleX Trader’ to borrow a triparty basket of collateral and achieve 100% re-use establishing the first true loan of triparty collateral. This transaction type reduces collateral cost and settlement risk as the trade executed and settled within two hours on trade date.ColleX uses time-focused auctions and screen-based trade negotiation, allowing clients to cover collateral needs (or monetize long inventory) reducing cost, time and settlement risks. ColleX was launched in Q3 2016 as part of the widening portfolio of electronic services developed by BGC Brokers FENICS business.