Elixium goes live
11 October 2016 London
Image: Shutterstock
Elixium, the new all-to-all electronic collateral and secured deposit marketplace, has executed its first transaction.
Citibank, as cash management agent, executed a collateral financing transaction on behalf of CME Clearing Europe. Insight Investment represented an unnamed UK pension fund on the other side of the deal. The trade took place on 6 October.
CME Clearing Europe is the first central counterparty (CCP) to trade collateral on the platform. Nick McCall, CEO of Elixium, commented: 鈥淒ue to a historical lack of direct counterparty access for non-bank participants, a trade between a CCP and an asset manager or pension fund would have previously been highly inefficient and costly to facilitate.鈥�
鈥淭he completion of our first trade demonstrates the rate of change in the repo market and the benefits of facilitating electronic all-to-all collateral trading in a regulated environment.鈥�
Tina Hasenpusch, CEO of CME Clearing Europe, added: 鈥淲e are pleased to have transacted the first trade on Elixium. CME Clearing Europe will use this platform as part of our commitment to working with the buy-side to manage their liquidity challenges, including the requirement to generate cash for variation margin.鈥�
鈥淧eer-to-peer solutions will help meet those challenges and the need to ensure that CME Clearing Europe has access to a diverse set of repo counterparties.鈥�
Citibank, as cash management agent, executed a collateral financing transaction on behalf of CME Clearing Europe. Insight Investment represented an unnamed UK pension fund on the other side of the deal. The trade took place on 6 October.
CME Clearing Europe is the first central counterparty (CCP) to trade collateral on the platform. Nick McCall, CEO of Elixium, commented: 鈥淒ue to a historical lack of direct counterparty access for non-bank participants, a trade between a CCP and an asset manager or pension fund would have previously been highly inefficient and costly to facilitate.鈥�
鈥淭he completion of our first trade demonstrates the rate of change in the repo market and the benefits of facilitating electronic all-to-all collateral trading in a regulated environment.鈥�
Tina Hasenpusch, CEO of CME Clearing Europe, added: 鈥淲e are pleased to have transacted the first trade on Elixium. CME Clearing Europe will use this platform as part of our commitment to working with the buy-side to manage their liquidity challenges, including the requirement to generate cash for variation margin.鈥�
鈥淧eer-to-peer solutions will help meet those challenges and the need to ensure that CME Clearing Europe has access to a diverse set of repo counterparties.鈥�
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