New functionality already deployed at major European banks to automate workflows and manage exposure in multiple markets, encompassing both repo contracts and underlying bonds
Broadway Technology, a leading provider of high-performance fixed income and foreign exchange front-office solutions, today announced it has rolled out extensive new functionality for repurchase agreement (repo) trading on its FICC trading platform, introducing complete and automated workflows for trading, hedging and collateral management on a global scale.
This functionality – called RepoTrader – represents one of the industry’s first full-fledged efforts to integrate and streamline the repo trading lifecycle for major institutions. It encompasses connectivity to multiple repo markets, order routing and management, and execution tools to help minimize market impact and maximize quality, pricing and automated hedging. Coupled with Broadway’s extensive fixed income functionality, RepoTrader enables users to trade repos and the bonds that are used as underlying collateral on a single platform.
Historically managed in a manual, over-the-counter fashion, the $15 trillion global repo market is moving towards electronification, spurred on by regulations and concerns over liquidity. In particular, Europe’s Securities Financing Transaction Regulation (SFTR) has pushed for higher standards of transparency, reporting and collateral management to prevent operational and systemic risk. By facilitating electronic trading and the automation of repo workflows, RepoTrader enhances how participants view and interact with the market, improving liquidity and promoting stability. Several of Broadway’s European banking clients are already using the RepoTrader functionality to manage repo inventories and activity in multiple markets.
“The automation of repo trading is more of a growth opportunity for dealers than a response to regulation. The repo market has been ripe for innovation for years and those participants who embrace the shift towards automation and intelligence will thrive in the face of market change,” said Tyler Moeller, CEO, Broadway Technology. “Broadway is committed to helping our clients navigate disruption in the capital markets, and our long-standing expertise making trading efficient, flexible and powerful were the catalysts for bringing this much-needed functionality to the market.”
Among the features of RepoTrader is the Bulk Order Manager, which provides highly efficient workflow tools for handling large inventories across multiple assets and geographies. This feature enables traders to perform bulk pricing and order management across their portfolio, integrating with other processes and workflows, such as position management. Traders can also access multiple order execution strategies, including pegged orders, TWAP and randomized-size iceberg orders to minimize impact in a variety of market conditions.
RepoTrader is the latest step in Broadway’s long-term business strategy to deliver a modern, global FICC trading platform that helps major institutions achieve efficiency and growth in their trading operations. Broadway’s platform integrates disparate data and technology assets, enabling an open data architecture, data-driven analytics and workflow automation, flexibility and the ability to respond quickly to innovation and change in the markets.