ACM Tri-Party Repo Volumes Top EUR 5 Billion Over Past Month

Cash and collateral management challenges has increased interest in the platform 

Chicago/London – Newedge, a global leader in multi-asset brokerage and clearing, and MTS, Europe’s premier facilitator for the European fixed income market, today announced record trading volumes on their Agency Cash Management (ACM) platform for the tri-party repo market.

Trading volumes in tri-party repo topped EUR 5 billion over the past month, as a growing number of institutions utilised the platform to meet the cash and collateral management challenges they face in the current market environment. The average duration of trades over this period was just under 10 days, with many participants now live on the platform.

ACM is an electronic auction-trading platform that enables institutional cash investors to enter into secured money market investments via the tri-party repo mechanism. Providing an alternative to the traditional suite of unsecured money market products, the platform offers access to cash management investment opportunities. By bringing new cash providers to the market, the platform also benefits banks facing continued pressure to diversify their sources of funding in the face of Basel III.

Angela Osborne, Co-Head of the Agency Cash Management business at Newedge, said: “More and more, buyside clients are looking to the ACM platform to form part of the solution to meet upcoming cash and collateral transformation requirements for centrally cleared swaps under EMIR.  This trend, coupled with the existing cash management requirements for securing cash with collateral from the unsecured money market products, means that interest in the platform is ever increasing. Record trading volumes reflect participants’ confidence in the platform’s utility and credibility. We look forward to continuing to work with institutional customers to meet their needs with innovative and forward-thinking technology.”

Oliver Clark, Head of Money Market and Derivatives Product at MTS, added: “The record trading volume on ACM over the last month is a positive step in the evolution of cash and collateral management for both banks and buy-side investors, and is testament to the innovative functionality enhancements we have recently implemented. For example, the platform now offers full Straight-Through-Processing (STP) to Euroclear, enabling participants to ensure the highest level of efficiency in their trading operations, and helping them to meet pre- and post-trade operational and inventory management obligations. Building on the progress the platform has made in Europe, we look forward to exploring the opportunity of rolling it out to U.S. institutional market participants via our U.S. entity.”