Icap launches repo settlement facility to reduce counterparty risk

Daily news headlines

LONDON - Interdealer broker Icap has launched a new initiative to reduce counterparty risks in the Italian repurchase agreements (repo) market. The facility, on European electronic fixed-income platform BrokerTec, will allow pre-agreed repo trades to be sent to Italian settlement agents and the relevant central counterparty.

Icap says the service mitigates counterparty risk by allowing central counterparty access to Italian repos for market participants trading directly or via any voice broker. The service is available for all BrokerTec's straight-though processing (STP) participants signed to the central counterparty for Italian government bonds.

"Any move to improve the robustness of the repo market using where possible the services of a central counterparty will receive our full support," says Simon Parkins, global head of repo trading at BNP Paribas. "I am particularly pleased therefore that interventions through various industry discussions, including the European Repo Council, have resulted in such a timely and efficient solution to the requests of market participants."

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Investment banks: the future of risk control

This Risk.net survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

Op risk outlook 2022: the legal perspective

Christoph Kurth, partner of the global financial institutions leadership team at Baker McKenzie, discusses the key themes emerging from Risk.net’s Top 10 op risks 2022 survey and how financial firms can better manage and mitigate the impact of…

Emerging trends in op risk

Karen Man, partner and member of the global financial institutions leadership team at Baker McKenzie, discusses emerging op risks in the wake of the Covid‑19 pandemic, a rise in cyber attacks, concerns around conduct and culture, and the complexities of…

Moving targets: the new rules of conduct risk

How are capital markets firms adapting their approaches to monitoring and managing conduct risk following the Covid‑19 pandemic? In a Risk.net webinar in association with NICE Actimize, the panel discusses changing regulatory requirements, the essentials…

Building resilience into ESG risk management

Risk and resilience continue to play an important role in the navigation of an increasingly uncertain world. Fusion Risk Management explores why it is equally crucial for technology to support organisations in addressing pertinent environmental, social…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here