SIX has gone live with its new Triparty Agent service aimed at streamlining front– and back–office processes for enhanced collateral management.
Through the combination of its existing Collateral Cockpit, its custody-agonistic technology interface for the repo market, SIX will provide a fully automated system for collateral management processes, including automated allocation and settlement of collateral and covering of margin calls.
“The collateral management process has – until now – been fragmented and unwieldly for many stakeholders. With our new Triparty Agent, we have created a hub that will harness the power of automation and intelligent data usage to give repo professionals, traders, treasury professionals, and other stakeholders full control over their collateral,” said Valerio Roncone, head future business, securities and exchanges, SIX.
“Through this technology, manual tasks like monitoring and adjusting will no longer require attention, and professionals can focus on what matters: driving efficiency, accountability, and accuracy.”
SIX’s tri-party system is used by over 170 domestic and international clients, including the Swiss National Bank (SWB) which uses the infrastructure for open market operations in Swiss francs and concludes repo transaction in US dollars in the form of auctions with its counterparties.
“The new Triparty Agent is an essential part of the renewal of the Swiss money market infrastructure. The SNB relies on this infrastructure to perform its open market operations. For Swiss banks and insurance companies, it is a crucial and direct way to manage their liquidity needs,” added Thomas Moser, alternate member of the Governing Board, SWB. “We congratulate SIX for the successful launch of this impressive integrated and automated system.”
In developing the service, SIX partnered with technology vendors Calypso and Synechron to ensure it was able to tackle the complexity of revamping its collateral management infrastructure.
With the go-live, further services are planned to be implemented in order to address regulatory changes, such as transaction reporting under the Securities Financing Transaction Regulation (SFTR), as well as other collateral optimisation services.