DBV-X to enhance collateral and liquidity management in Europe


DBV-X to enhance collateral and liquidity management in Europe
DBV-X to enhance collateral and liquidity management in Europe
19 May 2015: DBV-X, a new EU regulated marketplace for collateral and secured
deposits, has announced it will go live in Europe later this year.
Focused solely on funding and collateral needs, DBV-X will offer market participants cost-efficient and
rapid access to a diverse range of counterparties and high-quality liquid assets. All participants sign a
single standard legal agreement to join the platform and have full control over the products and
counterparties used, thereby enabling a peer-to-peer market to flourish.
The platform will offer full pre-trade counterparty anonymity, price transparency and a choice of
execution models. Market participants are able to trade automatically within their risk limits to access
a wide range of standardised liquid General Collateral (GC) “baskets”, encompassing a broad
spectrum of eligible assets including government and corporate bonds. This enables customers to
invest/raise cash against collateral (“repo”), perform collateral upgrades or generate addition yield
according to their individual investment, funding and margin requirements.
DBV-X is free to join and is open to corporates, asset managers, pension funds, insurance
companies, hedge funds, brokers, dealers and banks. Using standardised products and processes,
these firms will have access to a range of maturities, currencies and collateral options, with a choice
of Tri-Party or CCP cleared trades. It aims to go live in the last quarter of 2015.
DBV-X also announced that Euroclear has been appointed to act as the platform’s Tri-Party agent in
Europe. DVB-X has adopted Euroclear’s RepoAccess GMRA based legal model, which makes
counterparty diversification simple, fast and more efficient.
John Wilson, Managing Director, Tradition and Head of DBV-X, comments: “The current regulatory
and economic environment is driving fundamental change in funding and collateral markets – OTC
clearing, the impact of leverage ratios on repo activity by banks and LCR on short-term deposits – as
well as a clear shift away from unsecured collateral to secured deposits. This is driving the need for all
firms to re-assess their treasury strategies and consider diversifying their counterparties.
“We’re thrilled to be working with Euroclear on this initiative, which has been warmly received by
market participants during an extensive market engagement process. By offering full STP from order
to execution to settlement, same-day settlement is enabled through Euroclear’s market leading
Collateral Highway.”
Jo Van de Velde, Managing Director and Head of Product Management at Euroclear, comments: “We
would like to congratulate DBV-X on the launch of their electronic trading platform and are delighted
that DBV-X have chosen Euroclear as the market’s tri-party agent. By connecting with Euroclear’s
Collateral Highway, DBV-X’s clients will have fast, efficient and open access to a growing community
of counterparties and an ever growing pool of collateral and deposits for trading, margin and funding
- ends Enquiries:
Chatsworth Communications
Tel: +44 (0)20 7440 9780
[email protected]
[email protected]
About DBV-X
DBV-X is a new regulated Multi-lateral Trading Facility for collateral and secured deposits, wholly
owned by Tradition. It connects buy-side and sell-side participants to a deep pool of liquidity, offering
standardised access to a diverse range of high-quality liquid assets that can be traded as collateral in
a regulated environment on a peer-to-peer basis.
DBV-X is open to corporates, asset managers, pension funds, insurance companies, hedge funds,
brokers, dealers and banks, and aims to go live in the last quarter of 2015.
DBV-X user benefits:
Free to join, inexpensive to use
Simplified legal arrangements
Simple to use, efficient to trade with rapid counterparty diversification possible
Transparent prices/rates to assist best execution
Pre-trade anonymity
Liquid standardised products comprising general collateral “baskets”
Access to a range of maturities, currencies and collateral options
Draws on collateral schedules from central banks, ccps and other respected sources
Peer-to-Peer regulated market
Full control over products and counterparties used
Automatically trade within risk limits you set
Choice of Tri-Party or Cleared trades via Multiple CCPs
Single venue to:
– Maximise cash raised from inventory
– Earn fee income on secured collateral
– Enjoy competitive rates
– Efficiently use balance sheet
– Access diverse range of counterparties
About Tradition
Tradition is the trading name of Compagnie Financière Tradition SA, one of the world's largest
interdealer brokers in over-the-counter financial and commodity related products.
Represented in 28 countries, Compagnie Financière Tradition SA employs 2,200 people globally and
provides broking services for a complete range of financial products (money market products, bonds,
interest rate, currency and credit derivatives, equities, equity derivatives, interest rate futures and
index futures) and non-financial products (energy and environmental products, and precious metals).
Compagnie Financière Tradition SA (CFT) is listed on the SIX Swiss Exchange. For more information,
please visit www.tradition.com.
About Euroclear
Euroclear is one of the world’s largest providers of domestic and cross-border settlement and related
services for bond, equity, ETF and mutual fund transactions with offices in 15 countries across the
globe and links to 46 international markets.
Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation,
automation and efficiency at scale for its global client franchise which includes over 100 central banks
and supranationals.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by
Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear
Nederland, Euroclear Sweden and Euroclear UK & Ireland. The group settles the equivalent of $682
trillion(€634 trillion) in securities transactions annually representing 182 million domestic and crossborder transactions. The group holds $900 billion (€833 billion) in average daily collateral
outstandings, and over $28 trillion (€26 trillion) in assets for clients.
For more information, please visit www.euroclear.com, follow us on Twitter @EuroclearGroup or on
Tristan B Peniston-Bird
Tel: +44 20 7849 0886
[email protected]
Martin Gregson
Tel: +32 (0)2 326 4186
[email protected]
Aki Vlahodimos
Tel: +32 (0)2 326 4336
[email protected]