ASX Collateral

Optimise your cash and collateral to improve liquidity, drive efficiency and reduce risk.

Complementing our clearing and settlement services is ASX Collateral – a flexible, scalable tri-party solution for efficiently collateralising exposures across a range of Australian dollar products, including:

repurchase agreements – intra-day, overnight and term,
securities lending and borrowing
over-the-counter derivative bilateral exposures, and
Central Counterparty (CCP) margining.

ASX Collateral is the only tri-party collateral manager to be appointed by the Reserve Bank of Australia, who use ASX Collateral to conduct tri-party repo transactions with its members in its Open Market Operations (OMO).

Read the latest ASX Collateral Bulletin

Fact sheet

Product guide

Key transaction types

TRI PARTY REPO SERVICE (TRS)

Provides a Delivery versus Payment (DvP) mechanism for the principal settlement collateralisation and lifecycle maintenance of repo transactions, including margining and corporate actions.

Tri-party Collateral Management Service (TCMS)

Provides a Free of Payment (FoP) mechanism for the collateralisation and maintenance of various exposure types, including exposures relating to securities lending and borrowing, CSA margining and CCP margining with ASX Clear (Futures).

TRI-PARTY SECURITIES AND LENDING SERVICE (TSLS)

Provides a Delivery versus Delivery (DvD) mechanism for the principal settlement, collateralisation and maintenance of securities versus securities transactions, including exposures relating to securities lending and borrowing.

Efficient operational platform

Reduced Risk

Reduced credit and operational risk

Scale

Scale secured funding business

Transparency

Upfront agreed collateral schedules

Automated processes

Key processes are automated for efficiency and simplicity

Collateral allocation and substitution
Daily pricing and margining
Distribution payments
Trade maturity and settlement
Reporting via SWIFT or online

No transaction, custody or minimum fees

Free to cash providers
Collateral giver pays tiered balance fee – no transaction or custody fee
No minimum monthly fee to either participant for using ASX Collateral

Benefits of ASX Collateral

With a state of the art technology solution, ASX Collateral offers a range of benefits to both collateral givers and takers, reducing counter party risk and applying the highest regulatory standards. ASX Collateral leverages Clearstream Banking SA technology to facilitate the automatic allocation and optimisation of collateral across an array of bilateral agreements and counterparts.

Considers the needs of collateral givers and takers

Automatically facilitates interest or distribution payments to collateral givers, according to their nominated preferences.
Collateral givers can request collateral substitution at any time and have the option to auto-allocate assets from their source account.
Collateral takers maintain full cover through effective mark to market processes and proactive margining.
Collateral takers can also reuse collateral within the ASX Collateral environment.

Reduced counterparty risk

Collateral within the service is held in special purpose accounts within Austraclear.
This feature reduces counterparty risk by enabling customers to hold their collateral in an account structure which suits their principal agreement, and segregate their collateral across different accounts as they require.

Highest regulatory standards

Underpinned by Austraclear which is a Systemically Important Financial Institution (SIFI).
Assessed annually by the Reserve Bank of Australia (RBA) and the Australian Securities and Investments Commission (ASIC).
Clearstream Banking SA is regulated by Luxembourg's own central bank, the Banque Centrale du Luxembourg.
ASX Collateral is the only tri-party collateral manager to be appointed by the RBA, who use ASX Collateral to conduct tri-party repo transactions with its members in its Open Market Operations (OMO).

Quick links

SUBSCRIBE TO THE ASX COLLATERAL BULLETIN

The ASX Collateral Bulletin provides an insight into the utilisation of the ASX tri-party agent, and updates on matters relating to collateral management.

Click here to subscribe.