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Tri-party repo auction platform joins Euroclear
13 March 2013
The Newedge/MTS Agency Cash Management (ACM) joins Euroclear’s Collateral Highway
The Newedge/MTS Agency Cash Management (ACM) platform is the first tri-party repo auction platform to join Euroclear’s Collateral Highway service.
Newedge UK Financial and EuroMTS have signed a memorandum of understanding to promote the Collateral Highway as a way to manage collateral for tri-party repo transactions carried out on the ACM platform in Europe.
According to Tim Howell, CEO of Euroclear, the agreement with Newedge and MTS will ensure best execution of ACM tri-party repo deals on a straight-through basis.
“Given the caution with which market participants are managing risk in the current environment, the Collateral Highway helps cash givers and receivers mitigate counterparty risk by easily collateralising credit exposures with diversified pools of securities on a segregated basis.”
Nicolas Breteau, CEO of Newedge, said: “The new regulatory framework brings significant changes to the way institutional investors manage cash and collateral. Linking the ACM platform with Euroclear’s Collateral Highway creates a unique solution that helps participants to maximise the efficiency and transparency of their repo transactions and to meet all pre- and post-trade, operational and inventory management obligations.”