CO:RE (Collateral & Repo) is the real-time integrated securities finance offering powered and operated by SIX Securities & Exchanges. It brings together trading and collateral management capabilities in a fully integrated value chain starting from trading through settlement and finally to collateralization at the CSD or custodian level. The need to drive efficiency, reduce risk and control costs has made an efficient collateral management offering essential for every market player and provides benefits for banks, broker-dealers, insurance firms, commercial banks and asset managers alike.

Collateral pools for different exposures are mobilized to ensure collateral is where it is needed, when it is needed. Highly sophisticated segregation capabilities allow maximum client and ‘client of client’ protection to the n(th) segregation level. This ensures a high level of protection in any market scenario, while removing the administrative burden for clients and providing a single collateral view across different transactions.

Furthermore, clients benefit from a unique setup which brings together funding access to the Swiss National Bank as well as a multi-currency, multi-party trading platform across an integrated and fully automated collateral and cash management offering.

Trading Platform

CO:RE provides a multi-faceted electronic trading facility providing single-point access to over 160 counterparties trading repo contracts across 14 currencies. Central bank money and commercial bank money are both available as well as access to the SNB’s primary market for the issuance of money market instruments. A highly refined GUI bridges the gap between a highly standardized quoting facility along with a strong bilateral negotiation facility.

Through a limit-management pane, traders can actively monitor and adjust cash limits. This pane comes with a position view feature, providing direct access to the underlying collateral pool for the trader. This is our high performance response to the trend of back- and mid-office activities moving to the front-office. Meanwhile, the design is intuitive and the generic functional approach allows for a quicker time-to-market.

Collateral Management via TCM

CO:RE collateral management provides a link to custodians, agent banks, CCPs, market infrastructure and institutional clients requiring collateral management access to:

  • Bilateral OTC derivatives transaction cover¨
  • Collateral posting for centrally cleared transactions including OTC derivatives etc.
  • Exposure cover arising from an array of transactions ranging from fails lending, repo, SLB, ETDs etc.
  • Exposure arising from other transactions that require collateralization through tailor-made solutions

Real-time exposure coverage arising out of the above transactions are covered with collateral schedules managing a complex set of requirements from concentration limits to ratings, while ensuring the absolute safety of the collateralized assets by technically and legally blocking collateral to allow instant access if/when required.

Securities Lending and borrowing via SLB/SECLEND

CO:RE fails-driven securities lending provides a cost-effective way to cover settlement fails in most European equities and bond markets . This also provides clients with a low-risk opportunity to add to their bottom lines by generating incremental revenues.

CO:RE provides access to bilateral securities lending through Seclend, trading electronically with a fully outsourced administrative function taken over by SIX Securities & Exchanges. The service also serves to collateralize underlying structured products. This unique securities lending & borrowing (SLB) market benefits from straight-through processing (STP) from trade to settlement. Traders can monitor and manage loans in real time – at all times – without any manual intervention whatsoever.