ACM Tri-party Repo Market Volumes Top €5 Billion

Trading volumes on the Agency Cash Management (ACM) tri-party repo platform reached a record €5 billion over the past month, multi-asset brokerage and clearing provider Newedge says.
By Janet Du Chenne(59204)
Trading volumes on the Agency Cash Management (ACM) triparty repo platform reached a record €5 billion over the past month, multi-asset brokerage and clearing provider Newedge says.

The platform, which is a joint initiative between Newedge and MTS, Europe’s facilitator for the European fixed income market, is provided to financial institutions. The average duration of trades over this period was just under 10 days.

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.

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, says Newedge.

Angela Osborne, co-head of the Agency Cash Management business at Newedge, says: “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.”

Oliver Clark, head of Money Market and Derivatives Product at MTS, adds: “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.”

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