The first non-cash collateral exposure between A2X Markets and one of its brokers was successfully reported and settled using Strate’s triparty collateral management services. This came shortly after A2X Markets had announced it was operational and settling transactions on a T+3 settlement cycle using Strate’s settlement infrastructure.
Instead of placing cash to cover the capital exposure requirement (where cash is typically required to cover market and settlement risk), Strate’s collateral solution also enables broker’s to place securities as collateral for their exposure risk on A2X. This frees up cash for the broker, allowing brokers to more efficiently use cash to fund other transactions.
Financial services companies, African Rainbow Capital Investments (AIL), Peregrine Holdings (PGR) and Coronation Fund Managers (CML) are the first counters to have a secondary listing on A2X Markets. It has approved RMB Morgan Stanley, Peregrine Securities, Investec Securities and Avior Capital Markets as its stockbrokers, with more brokerages expected to be approved in coming weeks.