Guaranteed

Repo

Sunthay

Guaranteed

Repo

More efficient repo transactions for all market participants, through the innovative use of a bank guarantee.

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guaranteed repo

Sunthay has developed proprietary standardized documentation which will govern the operation of a global electronic trading platform managed by Bloomberg.

Through this platform lenders can execute repo transactions directly with borrowers in a cost- effective manner, with each transaction specifically guaranteed by approved financial institutions. Fully integrated post trade settlement flows will then be facilitated by Euroclear.

KEY BENEFITS

Increased capacity

Increased efficiency

reduced costs

By providing the opportunity for financial institutions to facilitate repo transactions in a more capital, cost-efficient and risk-reducing manner.

Front to back STP, reduced risk and the resultant reduced capital for financial institutions, greater transparency, and improved collateral management processes.

Through reduced settlement fees and improved operational efficiency.

global platform

HOW IT WORKS

The current market convention is for banks to provide credit intermediation services.

Lenders and borrowers of cash, transact with bank-intermediaries who effectively underwrite the credit risk of the transaction for lenders of cash by acting as a principal to the transaction via matched book trading.

The Guaranteed Repo structure allows borrowers and lenders to face one another directly

By providing a guarantee to lender on the performance borrower, the bank can step out as a principal to the trade, and steps back in as a guarantor.

A transformational approach to securities financing

Our global platform preserves existing market structure and relationships, increases transparency, reduces system-wide leverage, and increases financial resource efficiency.

For guarantors

Fee income for guaranteeing client trades, increased funding capacity, and increased return on equity.

For collateral providers

Increased access to consistent funding capacity and term financing.

For collateral takers

Increased access to consistent collateral availability.

A Front to back solution

Standardized documentation

Our proprietary standardized documentation provides the governance framework under which subscribers can transact Guaranteed Repo.

Electronic trading

The platform is on Bloomberg's electronic trading infrastructure, which will provide for supported integration with each market participant’s existing infrastructure.

Fully integrated post trade services

Our standardized and fully automated post trade messaging layer uses Euroclear's deep industry know-how to bring triparty-like services to existing custodial relationships.

CONTACT US

With a focus on basket trading in US Treasury and Agency repo markets.

Please contact us for further information.