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Big banks test DLT-based intraday FX swaps and repo trading platform

Big banks test DLT-based intraday FX swaps and repo trading platform

Teams from 14 banks, including Barclays, NatWest and Citi, have trialled a DLT-based intraday FX swap and repo trading platform from Finteum.

The platform, which promises to help banks manage intraday liquidity through the development of new interbank markets, is set to go live in 2023, with three of the trial participants already committed to participating.

The platform, which uses R3's Corda enterprise blockchain, enables payment-vs-payment intraday FX swaps as well as delivery-vs-payment intraday repo transactions.

For intraday repo, the trial assumed DvP settlement using Euroclear Bank’s existing triparty infrastructure. BNY Mellon’s triparty infrastructure can also be used to settle US dollar intraday repo transactions executed on the platform.

Finteum claims it is one of the first interbank venues to offer FX swaps and repo alongside each other in the same platform, something which is valuable to bank treasury teams, which use these two markets interchangeably for funding.

Brian Nolan, co-founder, Finteum, says: "Given the rising interest rate environment, intraday markets play an important role in banks’ liquidity optimisation strategy. We are excited to continue working with the Key Participant banks and including more banks in the group, ahead of go-live in 2023."

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