NEX Markets, a NEX business which provides electronic trading technology services in the fixed income and foreign exchange (FX) markets, announces today that BrokerTec Europe Limited has signed an agreement with BME Clearing, the Spanish Central Counterparty (CCP) operated by BME, to launch a new clearing option for BrokerTec’s existing clients. The agreement expands BrokerTec’s footprint in Spain by providing additional clearing services to the broader bank community. It will also enable BME to provide repo clearing services to existing BrokerTec clients.
NEX Markets agrees with BME to expand the clearing options over the BrokerTec platform
July 18, 2018
London, Madrid - NEX Markets, a NEX business which provides electronic trading technology services in the fixed income and foreign exchange (FX) markets, announces today that BrokerTec Europe Limited has signed an agreement with BME Clearing, the Spanish Central Counterparty (CCP) operated by BME, to launch a new clearing option for BrokerTec’s existing clients. The agreement expands BrokerTec’s footprint in Spain by providing additional clearing services to the broader bank community. It will also enable BME to provide repo clearing services to existing BrokerTec clients.
Currently many banks trade Spanish repo bilaterally and clear via BME Clearing. Through the agreement with BME Clearing, NEX Markets will allow banks to trade via the BrokerTec platform, the primary venue for repo trading in Spain. Banks will benefit from access to a deeper pool of liquidity and improved efficiency by moving to an electronic market.
As the sovereign debt markets have evolved in recent years, many international financial institutions have been increasingly active in the Spanish bond markets. In the past year alone, Spanish repo ADV on the BrokerTec platform has increased over 33%. Alongside this, the market has become almost entirely centrally cleared, up from 60% in 2013. John Edwards, Managing Director, BrokerTec EMEA, said: “The Spanish repo market has seen tremendous growth over the past few years and BrokerTec is a major venue in this market with a solid footprint of Spanish banks. By signing this agreement with BME Clearing, we are further expanding that client footprint in Spain, while also providing a new alternative clearing option for our clients.”
Ignacio Solloa, Managing Director BME Clearing, said: “While the electronic Spanish repo market has expanded in recent years, the bilateral bank-to-bank market has steadily contracted. We are delighted to connect to the BrokerTec platform to extend to their clients our CCP services and a deeper pool of liquidity.”
NEX Markets A NEX Group business, NEX Markets helps customers access liquidity and execute efficiently. We operate at the heart of the foreign exchange and fixed income global markets providing electronic trading technology and services. We offer access to multiple execution options, valuable liquidity from diverse sources and help execute transactions efficiently. Our financial technology, platforms and products are continuously evolving to meet the needs of a globally diverse community of professional traders who depend upon our services. For more information, go to www.nexmarkets.com.
NEX Group plc offers customers better ways to execute trades and manage risk. Our products and services underpin the entire trade lifecycle pre-, during and post-execution. Our electronic trading platforms are industry standards. Customers use our lifecycle management and information services to optimise portfolios, control risk and reduce costs. We partner with emerging technology companies to bring greater efficiency, transparency and scale to the world’s capital markets. NEX is headquartered in London with offices worldwide. For more information, go to www.nex.com.
About BME - BME is the operator of all stock Markets and financial systems in Spain and has been a listed company since 2006. The company offers a wide range of products, services and trading systems based on an advanced and stable proprietary technology. It also provides global market access systems to issuers, intermediaries and investors. One of the strengths of the Group resides in its diversification, apparent on the company structure, organized into six business-units: Equities, Fixed Income, Derivatives, Clearing, Settlement and Market Data & Value- Added Services. For more information, go to https://www.bolsasymercados.es/ing/Home
About BME Clearing - BME Clearing is the company that runs the Central Counterparty (CCP) activities in Spain and a BME subsidiary. It comprises the following segments: Financial Derivatives, Public Debt Repos, Energy Derivatives, Interest Rate Swaps and Equities. It recently expanded its product range to offer gas natural contracts. For more information, go to http://www.bmeclearing.es/?id=ing.
Source: NEX Newsroom