Press Release 3/07/01 - Anvil Software, the financial trading system specialists, and the Sydney Futures Exchange Clearing Corporation (SFEC) have agreed the use of the Anvil Repo Trading System (ARTS) to provide a number of key elements of system functionality to the Bond and Repo Clearing (BRC) project being undertaken by SFEC.
As part of the BRC project, SFEC will act as central counterparty for repos and outright bond transactions registered by its participants who will be able to replace their existing bank-to-bank bilateral repo and bond relationships with multilateral netting through SFEC. This will allow banks to net their market transactions, reducing their balance sheet and credit line usage. The project is set to go live in quarter three 2001.
ARTS provides the following specific functionality to SFEC:
- Margin reports. ARTS will allow SFEC to be able to evaluate and monitor initial and variation margin on a real-time basis for member counterparties.
- Reporting. ARTS will allow SFEC to be able to produce a wide variety of reports based on transaction data. These reports will also be made available to SFEC’s member counterparties.
Danny Corrigan, who acts via the Clearing and Netting Services Company as Project Director of BRC said, "The project will help to grow the repo and bond markets in Australia. The introduction of BRC is an important milestone in the Australian fixed income markets. It will allow for operational, balance sheet and capital efficiencies."
Phil Buck, Managing Director of Anvil in Australia said, "Winning the SFEC project is a big achievement for us in Australia. We could not asked for a better recommendation of ARTS and Anvil that our software has been chosen for such a central function in the Australian bond and repo market."
ARTS was initially developed as a front office dealing product for international repo, but it’s core functionality has proved ideal for SFEC’s requirements. ARTS has been installed in all the world's financial centres and boasts a client list that includes ABN Amro, Barclays Capital, Fortis Bank, Mizuho International, NIB Capital, Royal Bank of Canada and Rabobank.