Clearstream, Deutsche Börse Group’s post-trade services provider, recently completed its first tri-party repo transaction in Taiwan. Shanghai Commercial & Savings Bank Ltd, Taiwan (SCSB) partnered with ANZ Banking Group Ltd (ANZ) in this landmark transaction, with Clearstream acting as the tri-party agent.
The repo and reverse repo market plays an important role in liquidity management in Taiwan. Globally, tri-party repos are gaining popularity over more traditional money market instruments and bilateral repos, particularly among buy-side clients such as corporates, hedge funds and asset managers. This is due to their attractive risk/return profile, which combines a high degree of safety with the possibility for additional yield enhancement.
Clearstream’s tri-party repo service offers clients access to diversified and deep pools of liquidity, connecting global market participants as a neutral intermediary for 30 years. By leveraging Clearstream’s expertise and platform, clients benefit from streamlined settlement and administrative support, as well as value-added services from trade initiation to settlement.
Philip Brown, CEO at Clearstream Banking S.A., said:
“As a leading provider of global post-trade services, Clearstream is committed to connecting markets and facilitating innovation in the financial industry. This transaction in Taiwan demonstrates our dedication to supporting our clients’ evolving needs and expanding access to efficient and secure liquidity management tools. We are proud to partner with SCSB and ANZ on this important milestone for the Taiwanese market.”
“Partnering with Clearstream on this pioneering tri-party repo transaction represents a significant advancement for SCSB. Leveraging Clearstream’s robust platform and extensive network gives us a competitive edge in managing our liquidity and optimising our investment strategies. This transaction opens new opportunities for SCSB in the Taiwanese market and reinforces our commitment to delivering innovative financial solutions to our clients,” added Clement Lee, Treasurer of SCSB.
