SIX, a Swiss financial markets infrastructure operator, today announced that its Triparty Agent system has successfully gone live.
SIX invented and operates the multi-currency repo trading platform. The system is used by over 170 domestic and international clients, ranging from regional banks to Swiss insurance companies and the Swiss National Bank (SNB).
SIX said in its statement that by launching its new Triparty Agent, it strengthens the Swiss financial infrastructure and its commitment to the repo and securities finance business.
The Triparty Agent with its user interface Collateral Cockpit™ manages on behalf of the counterparties secured transactions such as repos, according to the announcement.
Automated allocation and settlement of collateral
This encompasses the automated allocation and settlement of collateral and covering of margin calls. Thanks to the highly automated system, no manual interventions are needed to perform these processes while operational risks are minimized, SIX said.
The new Triparty Agent is a central and essential element for the Swiss repo market. The SNB performs its open market operations in Swiss francs on this infrastructure and also concludes repo transactions in US-dollars in the form of auctions with its counterparties.
In connection with the Swiss repo market the new Triparty Agent further increases the attractiveness of secured financing, thus strengthening the stability of the financial system. The partnership with the specialists from Calypso and the integration partner Synechron, enabled to tackle the complexity of this important infrastructure with the required software and expertise, according to SIX.
Based on this renewed foundation, further services are planned and about to be implemented in order to address regulatory changes (i.e. transaction reporting) and a wide range of additional possibilities in using and optimizing collateral.
Fragmented collateral management
“The collateral management process has, until now, been fragmented and unwieldy for many stakeholders. With our new Triparty Agent, we have created a hub that will harness the power of automation and intelligent data usage to give repo professionals, traders, treasury professionals, and other stakeholders full control over their collateral. Through this technology, manual tasks like monitoring and adjusting will no longer require attention, and professionals can focus on what matters: driving efficiency, accountability, and accuracy,” Valerio Roncone, head of future business, securities and exchanges at SIX said.
“The new Triparty Agent is an essential part of the renewal of the Swiss money market infrastructure. The SNB relies on this infrastructure to perform its open market operations. For Swiss banks and insurance companies, it is a crucial and direct way to manage their liquidity needs. We congratulate SIX for the successful launch of this impressive integrated and automated system,” Thomas Moser, alternate member of the governing board at Swiss National Bank, commented.