BrokerTec, a NEX Group business which provides electronic trading technology and services for the fixed income market, and MTS, a fixed income electronic trading venue that is part of London Stock Exchange Group, are expanding the RepoFunds Rate (RFR) indices by adding Dutch and Belgian repo indices.
The RFR indices were launched in 2012 and include the German, French, Italian, Spanish and pan-European RFR indices.
Each RepoFunds Rate index accurately reflects the specific effective cost of Repo funding for trades executed on BrokerTec, and MTS, which between them typically trade volumes of EUR230 billion per day (single counted). The Dutch repo market transacts in excess of EUR11 billion nominal volume per day on BrokerTec, with an actively traded Specials and General Collateral (GC) market. The Belgian Repo market typically sees volumes in excess of EUR12 billion a day across Specials and GC baskets.
The RFR indices are calculated and published by NEX Data, a NEX Group business which delivers independent market intelligence and price information for over the counter (OTC) data via a variety of third parties such as Reuters and Bloomberg, as well as via email and FTP sources. Both the Dutch RFR and the Belgian RFR will be available from 16 May 2017.
Both indices provide trade-backed data which is used to measure the effective cost of funding within the Dutch and Belgian markets.
John Edwards (pictured), managing director for BrokerTec Europe, says: “The launch of both the Dutch and Belgian RepoFunds Rate complements the existing suite of RFR’s with both markets historically being significant in their contribution to the overall Pan Euro RFR. This launch follows the Spanish RFR rolled out in September 2016 and continues to illustrate the level of interest and value now given to the funding facilitated through the use of the secured Repo markets.”
Oliver Clark, head of product at MTS, says: “We are constantly looking for innovative solutions for clients and the wider market and the further expansion of the RFR indices into The Netherlands and Belgium is another step in providing the kind of information the market needs. These new RFR indices demonstrate that the Repo markets are an important indicator of the cost of funding in local markets.”
