Tradition’s repo platform executes first buy-side transaction

The platform executed its first collateral transaction on 6 October between a UK pension fund and CME Clearing Europe.

Elixium, a peer-to-peer repo exchange platform from Swiss-based interdealer broker Tradition, has executed its first buy-side collateral transaction.

CME Clearing Europe has also become the first clearing house to trade collateral on the platform, with Elixium in return assisting CME Clearing Europe with transparency and best price execution for its cash collateral investments.

Citibank, as cash management agent, executed on behalf of CME Clearing Europe, while Insight Investment executed on behalf of a UK pension fund. The trade took place on 6 October.

 “Due to a historical lack of direct counterparty access for non-bank participants, a trade between a CCP and an asset manager or pension fund would have previously been highly inefficient and costly to facilitate,” said Nick McCall, CEO of Elixium.

“The completion of our first trade demonstrates the rate of change in the repo market and the benefits of facilitating electronic all-to-all collateral trading in a regulated environment.”

Tradition launched Elixium following the breakaway from DBV-X, an electronic peer-to-peer platform for exchanging collateral founded by ex-Newedge clearing head John Wilson earlier this year.

Elixium aims to match treasurers and asset managements with hedge funds and pension funds in need of short-term financing.

“There is a clear need for solutions which can bring greater liquidity and price transparency to core investment markets. Insight actively researches new initiatives which have the potential to benefit clients and we have been paying close attention to recent innovations, of which Elixium is a notable example,” added Mark Stancombe, head of corporate and product strategy, Insight Investment.