State Street Launches P2P Repo Program for Buy-Side

Rick Steves

The firm guarantees the payment obligations of cash borrowers to cash lenders within the program following a default.

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State Street has launched a Peer-to-Peer Repo program for the buy-side which enables competitive financing costs across a broader range of collateral types and yield enhancement opportunities compared to traditional repo markets.

The firm guarantees the payment obligations of cash borrowers to cash lenders within the program following a default. This aims to facilitate bilateral trading by counterparties with varying credit and capital strength.

Nadine Chakar, head of State Street Global Markets, said: “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.

“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 buy-side 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”, Ms. Nadine added.

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.

Travis Keltner, managing director, State Street Global Markets Funding and Collateral Transformation, said: “We are pleased to continue building our buy-side securities financing tool-kit, delivering new solutions to meet evolving client needs. 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.”

State Street Corporation caters to institutional investors. Its offering includes investment servicing, investment management, and investment research and trading.

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