Cinnober is currently a major technology supplier to Quadriserv’s AQS securities lending platform.

In the wake of earlier financial crashes and with steadily expanding government regulations, there is pressure on industry participants to address systemic risk concerns in the secured funding and tri-party repo markets. These crucial markets need efficient trading platforms that maximize liquidity, transparency and credit, together with risk management and clearing facilities.

“Regulators have been asking the industry to address vulnerabilities in the short-term funding market since the crisis in 2008. We believe our platform will supplement those industry efforts,” says Pat Cestaro III, CEO of Quadriserv. “This will be the first centrally cleared equity repo system in the US. Quadriserv’s AQS repo system is being designed to avoid the extension of intraday credit and improve funding stability, while creating a process to handle dealer default and minimize fire sale risk. We have encouraged a great deal of industry input from money funds, dealers and regulators alike to design a fair and transparent market. We are excited to partner with Cinnober to build this solution.”

The new equity repo trading engine is based on Cinnober’s well-proven TRADExpress multi-asset platform and is slated to go live during the latter part of 2014. The system architecture will provide operational stability as well as high-performance functionality.

“Once more Cinnober is delivering technology to an innovative market player,” says Cinnober’s CEO Veronica Augustsson. “We are proud and happy about strengthening our long cooperation with Quadriserv, and we’re looking forward to offering the repo market a technical solution of the highest quality — and continuing to contribute to confidence in markets in general.”

Quadriserv is an innovator of the CCP model based securities lending and equity financing industry. Through its wholly owned subsidiary, Automated Equity Finance Markets, Inc., Quadriserv operates AQS®, a centralized platform for securities lending.

Cinnober is a world-leading supplier of financial technology to marketplaces and clearinghouses. The client list consists of major global players with extreme demands on reliability and performance, including names such as BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, the London Metal Exchange, LME Clear, MarkitSERV and the Stock Exchange of Thailand.