HQLAᵡ newsletter Jan 2020 No images? Click here Commerzbank, Credit Suisse and UBS execute first live transactions on the Deutsche Börse - HQLAᵡ securities lending platformFrankfurt, Luxembourg, 3 December 2019 Deutsche Börse and HQLAᵡ successfully launched their jointly developed Distributed Ledger Technology (DLT) solution for frictionless collateral swaps in the securities lending market. The live transactions were executed by Commerzbank, Credit Suisse and UBS on the Eurex Repo F7-trading system. As part of these transactions, ownership of a basket of German government bonds and a basket of corporate bonds was swapped between UBS and Commerzbank, both using Clearstream Banking S.A. as custodian. This was followed by a cross-custodian swap between UBS and Credit Suisse, in which ownership of a basket of corporate bonds at Clearstream Banking S.A. and a basket of German government bonds at Euroclear Bank was exchanged without the need for securities to be physically moved between the collateral agents. Instead, the change in ownership was recorded on the digital collateral registry, which is one of the four layers of the HQLAᵡ operating model and was built on Corda Enterprise, the commercial distribution of R3’s blockchain platform. A solution for managing high-quality liquid assets: How distributed ledger technology can benefit the securities lending marketFor the financial industry, the need to manage high-quality liquid assets (HQLA) efficiently and the related topic of collateral mobility are more relevant than ever. In the aftermath of the global financial crisis, they have posed a significant challenge for the industry. Progress on this issue is strongly linked to the evolution of new technologies. This paper assesses the current situation and how distributed ledger technology (DLT) can help to address this subject and improve the securities lending market. It examines which aspects need to be taken into consideration when design-ing a DLT solution, how it can be implemented and what are the next steps on our way to solving one of the most pressing issues for the future of financial services. HQLAᵡ recognised as one of Europe’s hottest fintech companies in 2019’s FinTech50 listHQLAᵡ has been included in The FinTech50, the first list in the world to recognise innovative European fintechs. Now in its seventh year, the annual list is selected by an international panel of experts. Last year’s list received over 1M views world-wide and companies listed on the 2018 FinTech50, Hot Ten and Hall of Fame raised a combined total of $2.53Bn in just 12 months. Leaders from Standard Chartered,-Silicon Valley Bank, UBS, Accel, Mastercard and Barclays UK. Meeting Intraday challenges with HQLAᵡThe following piece is a summary of an Independent Study research assignment conducted by Yale School of Management MBA candidate Christian Rodriguez-Chavez (’19) during the Spring 2019 academic term. |