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For one of our customers, Dr. Herbert Consult GmbH establish a new Frontoffice Component for the volume transformation of RepoDeals to achieve a scaling effect on the Repo Market. Dr. Herbert Consult GmH provide the Business analysis and integration in cooperation with our customers....We deliver a Java Swing based component with a tight coupling to the Reuters Frontoffice and Risk System Kondor+. For further details please contact Tobias Herbert....

 

In recent years, the trading of sale and repurchase agreements - or repo as they are commonly known today - has spread dramatically from its Anglo-Saxon heartland. The market is now also common throughout Europe, where the market utilizes these instruments for a variety of purposes. In today's world, repo are the single most important means employed by central banks to carry out open market operations in order to steer liquidity within the financial system, and hence implement their monetary policies. For commercial banks, the move away from unsecured money market transactions in favor of borrowings backed by highly rated securities means a significant reduction in credit risk and the tasks associated with assessing creditworthiness. For securities dealers, Special Repo is an attractive refinancing instrument and facilitates firms' overall collateral management efforts. Within the scope of a centralized approach to funding that includes money market transactions, forex swaps and securities lending, repo is already today an indispensable tool and constitutes an enormous amount of potential volume.

The proposed solution enable the customer to transform a couple of  smaller Repo/SecureLending Deals to a higher volume scale. As a result the bank could achieve a higher trade volume and better market penetration....