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Xtrakter, the fixed income market utility, released figures today highlighting an increase in TRAX repo (repurchase agreements) nominal value by 31% (EUR 2.2 trillion / USD 3.5 trillion) in Q1 2008.
The total nominal value for repos processed by TRAX in Q1 2008 was EUR 9.4 trillion (USD 14.8 trillion), an increase of 31% when compared to total nominal value EUR 7.1 trillion (USD 11.3 trillion) for Q4 2007. The number of repo transactions for the same period also increased by 16.8% overall.
Further analysis of TRAX figures highlighted ; Open Repo increased by 47% (EUR 32.6 billion / USD 51.7 billion), Term Repo increased by 31% (EUR 1.3 trillion / USD 2.1 trillion) and Buy-Sell-Backs increased by 8.3% (EUR 855.7 billion / USD 1.3 trillion) when compared to their Q4 2007 figures. The overall TRAX figures for Q1, 2008 are listed below:
Buy-Sell-Backs, EUR: 5.5 trillion, USD: 8.7 trillion
Term Repo, EUR: 3.7 trillion, USD: 5.9 trillion
Open Repo, EUR: 128.9 billion, USD: 203.6 billion
Kevin Milne, Chief Executive, Xtrakter commented “The importance of the repo market can not be over estimated, our TRAX data clearly shows the repo market continues to show strong resilience and growth, despite the credit crunch. ”
TRAX processes approximately 5,000 repo trades a day with an average daily volume of EUR 144 billion (USD 228.2 billion).
TRAX has been available to buyside firms since 2006, allowing both liquidity takers and providers access to a robust set of repo trading capabilities for the first time. Repos are still traded in large volumes over the counter (OTC) which can lead to increased levels of operational risk through human error causing delayed verification and settlement. TRAX allows firms to manage their operational risk effectively by matching trades which have been transacted OTC in all asset classes, in real-time with their counterparties, virtually eliminating failed trades at settlement.
