Our aim is to restore capacity to the repo markets by allowing banks to Guarantee Repo transactions.
Guaranteed Repo is a global electronic trading solution that increases capacity, reduces costs and improves operational efficiency in financing markets. It is a fully integrated, scalable, front-to-back solution.
Sunthay has developed and refined the concept and has contributed standardized guarantee documentation. Bloomberg provides the electronic trading capability, and Euroclear provides post-trade collateral management services. Guaranteed Repo can operate in multiple jurisdictions for multiple asset classes.
Capital Efficiency.
Our structure allows banks to reduce risk-weighted assets and balance sheet usage - which can enhance the return on their equity and assets, allowing them to more readily support repo market activity.
Material Cost Savings.
Guaranteed Repo reduces settlement costs for participants by causing collateral and cash to be exchanged directly among end users and end providers, eliminating the additional movement of collateral to intermediary banks in the "matched book" two-step settlement model.
Operational Efficiency.
Bloomberg and Euroclear provide services that make Guaranteed Repo an extremely efficient solution. Electronic trading reduces many of the risks of voice- and email-based trading.
Euroclear represents both parties to trades and acts as a matching agent, which reduces post-trade risk. In addition, the solution has consistent pricing sources, protocols and dispute mechanisms, which decrease uncertainty in the post-trade settlement process.
System-wide benefits.
Changing the nature of banks' roles from principal to guarantor results in a reduction in intraday liquidity usage, minimized risk-weighted asset usage, reduced counterparty concentration, reduced system-wide leverage, systemic risk, and enhanced operational efficiency.
Front-to-back infrastructure & scalability.
Benefits include standardized documentation, uniform electronic trading protocols, and post-trade collateral management services.
Clients retain their existing custody and prime broker relationships and simultaneously complete reviews and onboarding across jurisdictions.
Global Platform
Guaranteed Repo is multi-jurisdictional and multi-asset. Market-wide integration supports consistent workflows across all jurisdictions.
Contact us.
Book A Call