DBV-X

DBV-X, a new EU regulated marketplace for collateral and secured deposits, will go live in Europe later this year. Focused solely on funding and collateral needs, DBV-X will offer market participants cost-efficient and rapid access to a diverse range of counterparties and high-quality liquid assets. All participants sign a single standard legal agreement to join the platform and have full control over the products and counterparties used, thereby enabling a peer-to-peer market to flourish. The platform will offer full pre-trade counterparty anonymity, price transparency and a choice of execution models. Market participants are able to trade automatically within their risk limits to access a wide range of standardised liquid General Collateral (GC) “baskets”, encompassing a broad spectrum of eligible assets including government and corporate bonds. This enables customers to invest/raise cash against collateral (“repo”), perform collateral upgrades or generate addition yield according to their individual investment, funding and margin requirements. DBV-X is free to join and is open to corporates, asset managers, pension funds, insurance companies, hedge funds, brokers, dealers and banks. Using standardised products and processes, these firms will have access to a range of maturities, currencies and collateral options, with a choice of Tri-Party or CCP cleared trades. The marketplace aims to go live in 2016. DBV-X is working with Tri-Party agents that provide post-trade services for executed trades. Offering a simplified and standard GMRA based legal model, supplemented by rules of the Venue, DBV-X makes counterparty diversification simple, fast and more efficient.