Monte Titoli today announces it is developing a new triparty collateral management service, called X-COM, to support the financing and investment strategies of market operators.
Within the new service, Monte Titoli will play the role of neutral triparty agent, allowing customers to manage their assets more efficiently and in real time.
X-COM, dedicated to Treasury departments and back offices, will provide a flexible set of tools for more effective risk and liquidity management and for the optimisation in the use of collateral. Moreover, customers will benefit from automatic administration of collateral requests and a real time allocation, substitution and restitution of securities.
Paolo Cittadini, CEO of Monte Titoli said: "The new triparty service will offer our customer's enhanced efficiency, safety and flexibility and is an example of Monti Titoli's commitment to providing creative new solutions for its clients.
X-COM will significantly reduce our customers' administrative burden and provide back offices and treasuries with a dynamic new tool that will help them drive their businesses forward"
Kevin Milne, Director of Post Trade, London Stock Exchange Group, said: "The introduction of the triparty service is the result of considerable investment by Monte Titoli in a programme of product innovation. Effective collateral management is vital to our customers and I am delighted to see the launch of this new service, which will actively support the essential business functions of our clients."
X-COM is due to go live this autumn, subject to regulatory approval.
The service will immediately, upon launch, align with the money market operations of the Bank of Italy. As a result a bank using Monte Titoli's triparty service will have its interaction with the Bank of Italy simplified, taking advantage of "re-use" facilities by transferring securities already received as collateral to the central bank for re-financing operations.