Citadel and J.P. Morgan Confirm First Repo Transaction on MarketAxess’ Trade Confirmation Engine in U.S.
November 25 2019 - 8:30AM
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading
electronic trading platform for fixed-income securities, and the
provider of market data and post-trade services for the global
fixed-income markets, recently facilitated the first repurchase
agreement (repo) trade affirmation between Citadel and J.P. Morgan.
With more than 30 years of experience in providing the
technology to support electronic trade confirmation in Europe, this
transaction between Citadel and J.P. Morgan marks the first
automated confirmation through MarketAxess in the United States.
MarketAxess’ trade confirmation engine provides the ability for
buy- and sell-side clients to electronically confirm repo
transactions on T+0 and throughout the complex transaction
lifecycle.
Jamie Clayton, Head of European Operations, Citadel, said,
“Automation of the repo trade confirmation process reduces risk and
improves efficiency in this critical part of the Fixed Income
market. Partnering with MarketAxess has delivered a proven solution
to help modernize the post-trade process in Europe, and we look
forward to it expanding across all repo markets.”
Dan Phillips, Operations Manager, J.P. Morgan, commented,
“Solutions like MarketAxess’ trade confirmation engine are a useful
tool in managing pre-settlement risk with a streamlined technology
solution backed by a broad community of counterparties.”
Repo transactions are typically confirmed manually which can
increase the risk of trade failures and ultimately cost. By
offering a service that automates the confirmation process, the
industry benefits from reduced risks and greater control over their
post-execution processes. The growing global community of over 50
firms leveraging the repo trade confirmation service further
reinforces the value of the offering. In October 2019, MarketAxess
saw a 94% increase in the number of repo transactions confirmed, as
compared with year-end 2018.
Camille McKelvey, Head of Business Development, MarketAxess
post-trade solutions, said, “The repo market has historically
experienced a long-standing lack of automation. As SFTR and CSDR
are raising the profile of risks associated with not having an
efficient trade confirmation solution, more firms are now migrating
to electronic solutions like ours. Citadel and J.P. Morgan have led
the way in the United States by extending their existing use of
MarketAxess’ trade confirmation engine outside of Europe, and are
ultimately supporting a growing global community.”
Trade confirmation services have further applications in
supporting regulatory compliance with the impending Securities
Financing Transaction Regulation (SFTR) and Central Securities
Depository Regulation (CSDR). As the potential cost for reporting
inaccuracies and settlement failures increases with these
regulations, confirming transactions close to the point of
execution through an automated solution is paramount to managing
regulatory and settlement risk.
About MarketAxessMarketAxess operates a
leading, institutional electronic trading platform delivering
expanded liquidity opportunities, improved execution quality and
significant cost savings across global fixed-income markets. A
record $1.7 trillion of U.S. investment-grade bonds, U.S. high
yield bonds, emerging market debt, Eurobonds and other fixed income
securities traded through MarketAxess’ patented trading technology
in 2018. The global community of 1,600 firms trading on
MarketAxess today include the world’s leading asset managers and
institutional broker-dealers. MarketAxess’ award-winning Open
Trading™ marketplace is regarded as the preferred all-to-all
trading solution in the global credit markets, creating a unique
liquidity pool for a broad range of credit market participants.
Drawing on its deep data and analytical resources, MarketAxess
enables automated trading solutions and, through its Trax®
division, provides a range of pre- and post-trade services and
products.
MarketAxess is headquartered in New York and has offices in
London, Amsterdam, Boston, Chicago, Los Angeles, Miami, Salt Lake
City, San Francisco, São Paulo, Hong Kong and Singapore. For more
information, please visit www.marketaxess.com.
MarketAxess Media Relations Contacts:New
York:Kyle WhiteMarketAxess Holdings Inc.+1 212 813
6355kwhite@marketaxess.com
Davis MacMillanRF | Binder+1 212 994
7509MarketAxessPR@rfbinder.com
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