The
Deutsche Börse-HQLAX distributed ledger technology (DLT) solution for collateral swaps is live. Commerzbank, Credit Suisse and UBS executed the first transactions on the existing Eurex Repo F7 trading system owned by Deutsche Börse. The innovation is that conventional collateral swaps encounter delays while the legal ownership is transferred. Instead, using HQLA
X, the securities remain with the existing collateral agents, but the change of legal ownership is recorded on the digital collateral registry.
“The go-live of the
HQLAX operating model demonstrates the power of innovation that DLT is already bringing to the financial services industry,” said Jens Hachmeister, Head of New Markets at Deutsche Börse. “It proves how new technology can successfully be combined with trusted market infrastructure – and the positive reception of the model in the market speaks for itself. We look forward to continuing our fruitful collaboration with HQLAX.”
In the first transaction, a basket of corporate bonds was swapped between UBS and Commerzbank, which were both using Clearstream Banking as custodian.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
Image Copyright: HQLAX
