Broadway Technology has rolled out new functionality for 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 – aims 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 minimise market impact and maximise quality, pricing and automated hedging, the firm says.
Among the features of RepoTrader is the Bulk Order Manager, which provides 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, says Broadway. Traders can also access multiple order execution strategies, including pegged orders, TWAP and randomised-size iceberg orders to minimise impact in a variety of market conditions.
Coupled with Broadway’s fixed income functionality, RepoTrader allows users to trade repos and the bonds that are used as underlying collateral on a single platform. Several of the firm’s European clients are already using the RepoTrader functionality to manage repo inventories and activity in multiple markets.
Although the global repo market has historically been managed in a manual, OTC manner, Broadway claims that it is moving towards electronification, a change that the firms says is being driven by changing regulations and concerns over liquidity.
In particular, Broadway highlights that Europe’s Securities Financing Transaction Regulation (SFTR) has pushed for higher standards of transparency, reporting and collateral management to prevent operational and systemic risk. The firm claims that 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.
“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,” says Tyler Moeller, CEO.