State Street: Peer-to-Peer Repo; GLMX
Today, we link to and quote from two briefs on new developments in the repurchase agreement, or repo market. State Street writes on "The Case for Peer-to-Peer Repo Solutions in EMEA," while GLMX posted the release, "Record $1.5 Trillion Daily Balance Reached on GLMX Platform as Adoption of Electronic Trading for Securities Finance Accelerates." The former says, "Investors are seeking the right tools for liquidity and diversification in this everchanging market environment. Market volatility and the recent banking crisis are hinting at a near-term recession for markets worldwide. This market volatility -- combined with credit concerns -- has led investors to consider risk-efficient options that will support cash investment and cash borrowing effectively. Moreover, excess cash with interest rates well into positive and restrictive territory across the globe present a significant opportunity cost. As a result, investors are looking for alternative repo solutions to diversify their collateral sourcing and cash investment capabilities, which can be critical during times of crises. In this article, we review the evolution of the repo market, describe the effects of recent market events, and outline how a peer-to-peer repo model can be beneficial in the Europe, the Middle East and Africa (EMEA) markets." The latter tells us, "GLMX Technologies LLC, a comprehensive global technology solution for trading Money Market instruments, including repurchase agreements and securities lending transactions, for the first time eclipsed $1.5 trillion in daily balances. These balances represent the trading activity of some of the largest global financial institutions which utilize GLMX technology to negotiate and execute securities financing transactions (SFTs). Since inception, GLMX has seen $186 trillion in volume executed via its technology. Glenn Havlicek, CEO and Co-Founder of GLMX, comments, "Exceeding $1.5 trillion in balances reflects the over 120% year-over-year growth we saw at June 30 of this year. Further, it speaks to the amazing effort of GLMX employees and the speed at which the money market industry is welcoming innovative technology. The success GLMX has achieved in the securities finance market is replicable across the greater money market ecosystem which is where we have been expanding our focus and will continue to do so moving forward."
