03.04.2021

State Street Launches Buy-Side Peer To Peer Repo Financing

State Street Corporation announced the release of a new Peer-to-Peer Repo program for the buy-side. Building from its market-leading position in sponsored repo and securities lending, including peer-to-peer opportunities within its agency lending program, Peer-to-Peer Repo enables competitive financing costs across a broader range of collateral types and yield enhancement opportunities compared to traditional repo markets. State Street guarantees the payment obligations of cash borrowers to cash lenders within the program following a default, thus facilitating bilateral trading by counterparties with varying credit and capital strength.

“We are very pleased to be launching our Peer-to-Peer repo marketplace that will enable the buy-side seeking market liquidity to extract incremental value by accessing this new platform,” said Nadine Chakar, head of State Street Global Markets. “State Street has a history of creating innovative solutions tailored to the buy-side market, most recently a peer-to-peer securities lending product, and the launch of this new Peer-to-Peer repo platform further demonstrates our market expertise in fundamental financing & collateral solutions. This platform, designed in close collaboration with buyside clients, further complements our broader investments in sponsored repo and collateral management. We are excited to be at the forefront of an evolving and exciting journey for the industry.”

This offering is available to a broad range of client types including non-financial corporates, asset owners, pension plans, regulated funds, insurance firms, and hedge funds, today, whether or not current State Street custody clients. Program participants trade with one another pursuant to a common master repurchase agreement, negotiating trade terms with approved counterparties within the program’s broader requirements guidelines.

“We are pleased to continue building our buy-side securities financing tool-kit, delivering new solutions to meet evolving client needs,” said Travis Keltner, managing director, State Street Global Markets Funding and Collateral Transformation. “We look forward to growing this program with new currencies, assets and collateral flexibility for our global client base. We have valued collaborating with clients and partners and plan to strategically position the program with extended front-to-back capabilities, including collateral management. Ultimately, we look to align this market infrastructure as part of the evolving digital landscape.”

Source: State Street

Related articles

  1. Volume of trading in crypto products at SIX has increased 310% from last year.

  2. ceo-chat-frank-troise-itg

    Valéry Derbaudrenghien of Robeco works to optimize workflow while reducing operational risk.

  3. This is the largest collective AUM to sign a global investor statement on climate change.

  4. A structured home-office work mix can optimize a trading desk's efficiency, Fidelity's Tom Stevenson writes.

  5. Mandating disclosure will give fund managers consistent, comparable, and reliable data.