Instimatch Global announced a strategic partnership with Frontclear to jointly deliver an end-to-end global repo trading solution that will support developing countries in creating an effective money market and further integrating into the global economy, thereby increasing trade and investment opportunities.
Adrian Edelmann, CEO of Instimatch Global AG, said in a statement: “Our joint vision is to create an inclusive money market system in Africa, providing access to a significant depth of local liquidity and a range of global counterparties. Together we can offer a standardized and negotiable trading workflow for interbank transactions on Frontclear’s Tradeclear platform, whereby Frontclear can enhance liquidity on the platform via credit risk guarantees and principal trading capabilities.”
Philip Buyskes, CEO of Frontclear, said in a statement: “Money markets are the most fundamental layer of financial markets, supporting maturity transformation and responsible lending practices of banks, deepening of government security markets, and allowing for effective transmission of monetary policy signals.”
Transactions on the Tradeclear platform are guaranteed by Frontclear, ensuring that money markets can be stable and inclusive. The Tradeclear platform’s market benefits include:
Access: Connects African financial institutions to both domestic and cross-border interbank markets and in turn, facilitates global counterparties’ access to domestic parties.
Liquidity and pricing: Improves price discovery and matching processes thereby reducing the bid-ask spreads and risk of market frictions.
Market transparency: Provides information and data on the African repo market enhancing market surveillance and oversight and improving the compliance and reporting of market participants.
Efficiency: Complements and (further) automates repo trading processes, enabling the integration and interoperability of the African repo market with other financial markets and instruments.
The new jointly developed platform is targeted for launch in Uganda in Q1 2024 and Zambia in Q3 2024 on the back of extensive technical assistance provided by Frontclear in recent years to remove market development barriers.