.jpg)
Clearstream has facilitated the first triparty repo trade where cash is lent from a Middle East cash provider. The National Bank of Abu Dhabi (NBAD) is the first financial institution in the region accepting Middle East counterparties as cash takers and Middle East assets, i.e. sovereign and corporate bonds out of the Gulf Cooperation Council (GCC) area , as collateral. This first trade of National Bank of Abu Dhabi as local cash provider settled on 7 July 2011 through the Clearstream Global Liquidity Hub infrastructure. So far, Middle East financial institutions would usually trade (triparty) repos with counterparts and collateral outside the Middle East.
Philippe Metoudi, Member of the Executive Board of Clearstream and Head of Client Relations Asia/Pacific/Middle East/Africa, said: “This very first local cash provider – cash trade marks a milestone for the Middle East and will facilitate the creation of a truly local market in the region. With almost two decades of experience in the region and our long-standing presence in the United Arab Emirates (UAE), we will continue to support this development.”
Stefan Lepp, Member of the Executive Board of Clearstream and Head of Global Securities Financing, said: “This is a further important step towards the extension of our Global Liquidity Hub in this important region. This initiative supports our global strategy to further strengthen transparency, reliability and efficiency in the financing industry in close cooperation with market participants, regulators and central banks.”
Paul Voce, Global Head of Repo National Bank of Abu Dhabi, said: “Our first Middle East triparty repo trade will mark the kick-off point for the flow of liquidity within the region. It will also encourage the development of a true triparty repo refinancing market among local players and collateral. NBAD can fully leverage their expertise and experience with both local counterparts and Middle East collateral.”
Clearstream has a long-standing presence in the Middle East. Its office in Dubai was opened in 1995 to cover both the Middle East and Africa with a team of local sales and relationship specialists. National Bank of Abu Dhabi is one of the largest banks of the UAE with €41.2 billion (US$58 billion) of assets and one of the strongest combined ratings among the Middle Eastern and North African financial institutions.
Clearstream offers a wide range of collateral management services together with a suite of securities lending products under the GSF services. In June 2011, the GSF monthly average reached an outstanding volume of in €565 billion (US$795 billion) illustrating the growing importance of secured financing. Clearstream has more than 20 years of experience in securities financing mechanisms which provide liquidity to the world’s capital market.
