ABN AMRO has launched MoneyMarket Express, an online portal for financial institutions to invest in a range of AAA-rated money market funds from a single trading platform.
MoneyMarket Express allows the user to access a wide range of money market funds, including onshore and offshore USD funds, EUR and GBP funds; compare assets, performance and ratings of different funds and make multiple fund purchases, redemptions or exchanges with one single payment.
Recent regulatory changes have made money market funds attractive investment vehicles for financial institutions in Europe by aligning their treatment with interbank deposits.
These include the Capital Requirements Directive (CRD), which, under Basel II, is currently being introduced across Europe. CRD has improved the capital treatment of money market funds, bringing them in line with inter-bank deposits as a cost-effective investment option.
In addition MiFID, implemented on 1 November 2007, allows financial institutions to place client money in qualifying money market funds for the first time, thereby adding to the traditional accounts where client money could previously be placed.
“Investing in multiple money market funds from a single platform makes it easy to diversify a cash portfolio whilst ensuring optimum yields and same-day access to liquidity. The launch of MoneyMarket Express is timely, given recent regulatory changes combined with the increased focus on liquidity for all financial institutions. Now, financial institutions can take full advantage of money market funds for their day-to-day liquidity requirements,” says Mike Hampson, head of financial institutions, Transaction Banking, ABN AMRO.