U.K.-based publication HedgeWeek writes that, "Insight money market fund completes first cleared trade via central counterparty." The article explains, "A money market fund managed by asset manager Insight Investment has completed its first repo trade cleared via a central counterparty, providing investors in the fund with access to a fresh pool of liquidity and marking a further milestone in the structural development of the liquidity market.... This latest trade, placed by the GBP£24 billion Insight GBP Liquidity Fund, was cleared by the RepoClear 'Sponsored Clearing' service operated by global clearing house LCH. The service provides buy-side market participants with access to central clearing, a facility which until recent years has been largely restricted to the banking community. Central clearing can offer capital and operational efficiencies, enabling firms to reduce their risk, while increasing capacity in the market. It provides an alternative source of liquidity to the more common route of one-to-one, or 'bilateral', counterparty trading relationships." Chris Brown, Head of Money Markets at Insight Investment and portfolio manager of the fund, tells HedgeWeek, "This development is significant for money market funds, which use repo as an asset class and can now access a wider pool of liquidity. The ability of the buy side to clear with a central clearing counterparty deepens and diversifies the available sources of repo liquidity." Watch for more on Sterling and European money funds as we host our European Money Fund Symposium next week, Sept. 23-24, at The Hilton Dublin in Dublin, Ireland. The latest agenda is available and registrations are still being taken for the largest money market fund gathering in Europe. Contact us for more information, or feel free to stop by the show if you're in Dublin.... See you Monday!

Email This Article




Use a comma or a semicolon to separate

captcha image