Global Collateral Management

MTS’s Global Collateral Management (GCM) service combines the functionality and technology of its established D2D Repo and D2C Cash platforms to create a dedicated new section on MTS BondVision, enabling direct electronic D2C trading in repo contracts.

By adding RFQ trading functionality to its existing Repo technology, MTS enables sell-side dealers to trade with buy-side clients using familiar protocols, existing connectivity and automated straight through processing (STP), requiring limited, or no development work on both sides.

With a desktop presence at over 100 sell-side institutions via its MTS Repo platform, and over 400 buy-side institutions via its MTS BondVision platform for cash bonds, MTS is ideally placed to help buy-side clients seeking access to balance sheet in an environment of reduced collateral availability and increased regulatory burden. The unique dealer axe pages help highlight dealer inventory, linking to interdealer quotes to ensure axe integrity.

Automated connectivity to LCH’s recently launched Sponsored Clearing gives buy-side clients using this service, and the banks with whom they trade, the opportunity to offset and net balance sheet exposure improving access to liquidity whilst providing the added security inherent to CCP trading.

As part of London Stock Exchange Group (LSEG), and in anticipation of the Securities Financing Transactions Regulation (SFTR) expected in 2018, MTS has partnered with UnaVista, LSEG’s award-winning European Trade Repository, to further enhance the platform by providing a seamless solution enabling participants to meet their reporting requirements, if needed.

Dealers and clients can now benefit from a variety of new features, including:

  • RFCQ efficiencies through automation: clients can send single line or “list” RFCQs to their dealers, with an import function to allow easy upload of bond portfolios
  • Addresses growing regulatory challenges including SFTR compliance, through MTS’s partnership with UnaVista, LSEG’s European Trade Repository
  • Wide sell-side coverage: Fully integrated with major Independent Software Vendors (ISVs) to maintain the widest sell-side coverage
  • Straight through processing: dealers benefit from existing STP efficiencies, with trades co-mingled in their current blotter, whilst clients benefit from a full audit trail for proof of best execution
  • Flexible tri-party baskets:  MTS will list participants’ bespoke tri-party baskets, with visibility restricted to approved dealer-client combinations
  • Full control of streaming of indicative quotes for dealers: dealers can stream axes, linked to their interdealer market quotes, to their configured clients on a proposal by proposal basis, directing them to relevant pools of liquidity and leading to improved access to funding and pricing
  • Highly granular credit line matrix: full control over trading counterparties with credit lines configurable by counterparty and instrument class with max tenor limits for each line and haircut capabilities