Santander Corporate and Investment Bank (SCIB), together with BlackRock, have launched Mexico’s first fully electronic market for repo. The solution aims to bring the country’s repo operations closer to the standards in established markets such as Europe and the US.
Operated through the Tradeweb Markets platform, the new service makes Mexico the first country in Latin America to digitalise its repo market. Its first operation was executed with Blackrock as client and SCIB as liquidity provider.
Institutional clients, which include mainly the country’s Retirement Funds Administrators (AFOREs) and investment funds, can now benefit from a fully digital management process covering request-for-quotes execution, post-trade fund allocation, and collateral assignment.
Current users of order and execution management systems (OEMS) that have been integrated with Blackrock’s Aladdin can connect directly with the Tradeweb platform and use Mexican government securities as collateral. Tradeweb confirms in a press release that the platform “supports trading across all repo segments – including specials, GC, and triparty – for a variety of terms”.
Following the onboarding of SCIB as the platform’s first liquidity provider, Tradeweb has plans to include additonal dealers and clients with Mexican peso repo books in the near future.
