ColleX Executes First T+0 Triparty Collateral Loan, Improving Securities Finance Efficiency

LONDON, Oct. 10, 2017 /PRNewswire/ — Collateral Exchange platform ColleX announced today that it has executed its first T+0 triparty collateral loan, bringing improved efficiency to securities finance trading.

The trade was conducted between Bank of America Merrill Lynch and ING Bank N.V., with J.P. Morgan as collateral custodian; it was executed using one of ColleX’s 10 standardised baskets, which have been implemented across the major triparty agents. The transaction enabled the ‘ColleX Trader’ to borrow a triparty basket of collateral and achieve 100% re-use establishing the first true loan of triparty collateral. This transaction type reduces collateral cost and settlement risk as the trade executed and settled within 2 hours on trade date

Grant Davies, ColleX Head of Business Development said: “The success of ColleX is being driven by a growing collateral market. More than USD2.7 trillion of collateral is now managed by EMEA triparty custodians with Seg IM, CCP (Centrally Cleared Counterparty) margin and collateralisation of credit lines increasing demand for efficient collateral solutions. ColleX enables market participants to leverage triparty infrastructure, mobilize firm inventory and convert it into eligible collateral to meet these needs.”

“Given ING’s established reputation in securities financing and experience in tri-party transactions for our clients, we see the benefits of electronic trading in terms of transparency and efficiency. We are pleased to be a part of this innovation,” said ING’s Co-Head of Global Securities Finance Richard Pryce.

ColleX uses time-focused auctions and screen-based trade negotiation, allowing clients to cover collateral needs (or monetise long inventory) reducing cost, time and settlement risks. ColleX was launched in Q3 2016 as part of the widening portfolio of electronic services developed by BGC Brokers L.P.’s FENICS business. BGC Brokers is an affiliate of BGC Partners, Inc.

About BGC Partners, Inc.
BGC Partners is a leading global brokerage company servicing the financial and real estate markets. BGC owns GFI Group Inc., a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets. The Company’s Financial Services offerings include fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, insurance brokerage, and structured products. BGC provides a wide range of services, including trade execution, broker-dealer services, clearing, trade compression, post trade, information, and other services to a broad range of financial and non-financial institutions. Through brands including FENICS, BGC Trader, Capitalab, Lucera, and FENICS Market Data, BGC offers financial technology solutions, market data, and analytics related to numerous financial instruments and markets.

Real Estate Services are offered through brands including Newmark Knight Frank, Newmark Cornish & Carey, Berkeley Point, ARA, Computerized Facility Integration, Newmark Knight Frank Valuation & Advisory, and Excess Space. Under these names and others, the Company provides a wide range of commercial real estate services, including leasing and corporate advisory, investment sales and financial services, consulting, project and development management, property and facilities management, the origination and sale of multifamily loans through government-sponsored and government-funded loan programs, as well as the servicing of commercial real estate loans, including those it originates.

BGC’s customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, property owners, real estate developers, and investment firms. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com. You can also follow the Company at https://twitter.com/bgcpartners and/or https://www.linkedin.com/company/bgc-partners.

BGC, BGC Trader, GFI, FENICS, FENICS.COM, Besso, Sunrise, Capitalab, Swaptioniser, ColleX, Newmark, Grubb & Ellis, Berkeley Point, ARA, Computerized Facility Integration, Landauer, Lucera, Excess Space, Excess Space Retail Services, Inc., and Grubb are trademarks/service marks, and/or registered trademarks/service marks and/or service marks of BGC Partners, Inc. and/or its affiliates. Knight Frank is a service mark of Knight Frank (Nominees) Limited.

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