(LONDON, UK) Xtrakter, the market utility, is pleased to announce that TRAX the matching and regulatory reporting system processed 2.3 million repos with a nominal value of EUR 65 trillion over the course of 2007. TRAX is the only fully automated repo matching system available in the capital markets.

 

TRAX now offers automation of open repo including Post Trade Actions (PTAs). PTAs assist in reducing operational risk for both counterparties by recording the effective measurement of contract changes throughout the repo life cycle.

The 2007 repo trades were broken down as follows;

Classification, Quantity EUR, Nominal Value:

• Term repo, 1,092,073 million, 34,875.486 billion
• Open repo, 26,584 million, 238.814 billion
• Buy-Sell-Backs, 1,097,175 million, 29,000.276 billion

TRAX processes both the near and far leg transactions as one single trade, allowing for improved tracking, reduced operational risk and a cost saving of 50% for subscribers. 

 

Repo is still traded in large volumes over the counter (OTC) which can lead to increased levels of operational risk through human error causing delayed verification and settlement. TRAX allows firms to manage their operational risk effectively by matching trades which have been transacted OTC in all asset classes, in real-time with their counterparties, virtually eliminating failed trades at settlement.  TRAX processes approximately 5,000 repo trades a day with an average daily volume of EUR 124 billion.

An additional benefit of TRAX is that users can fulfil transaction reporting requirements in a range of financial instruments to a number of regulatory authorities throughout the EEA.

TRAX has been awarded Approved Reporting Mechanism (ARM) status by the Financial Services Authority (FSA) of the United Kingdom, Autorité Des Marchés Financiers (AMF) of Franceand the Authority for the Financial Markets(AFM) of the Netherlands in conjunction with Article 25 of the Markets in Financial Instruments Directive (MiFID).

TRAX processed over 104m transactions in 2007 on behalf of its reporting subscribers. 

For more information about this topic or Xtrakter please contact:

 

Commercial Operations

Tel: +44(0)20 7535 5656

 

Fax: +44 (0) 20 7538 4902

 

Click here to e-mail:  CommercialOperations@xtrakter.com

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