Monte Titoli launches 'X-COM', new service for tri-party collateral management
- Responds to customer need for diversification of financing tools
- Monte Titoli to act as neutral third-party agent
- Fully customisable process, leaving users in full control of risk-profile
London Stock Exchange Group today announces that Monte Titoli has launched ‘X-COM’, its tri-party collateral management service*. The new service will allow banks’ treasury departments and operations departments to manage their investment strategies and financing more efficiently.
Monte Titoli will act as a neutral third-party agent for optimised management of collateral used for finance operations in the inter-bank market. The service is aimed at maximising the efficiency of the process whilst minimising a bank’s investment in back-office resources and IT.
Through X-COM’s fully customisable process, users will have full control of the risk profile chosen for their investments, enabling them to continuously monitor their portfolio while reducing the administrative risks linked to collateral management activities.
During the initial implementation phase, X-COM will interact with Bank of Italy’s pooling system to support Eurosystem credit operations.
The second phase will see the service expand to further centralised activity of collateral management to support different business needs such as financing, securities lending and margin management for operations with central counterparties.
Paolo Cittadini, CEO of Monte Titoli, said:
“The new X-COM service responds to our customers’ growing need for diversification of financing tools and efficiency on the markets, offering a collateral management service essential to every market participant.
“This project has a systemic relevance, not only for the entity and quantity of subjects involved but also to support the inter-bank market.”
* The two parties involved in a transaction delegate to a third party (Monte Titoli) the management of collateral. Monte Titoli acts as a “neutral” agent and common custodian for the collateral held on behalf of both parties. This maximises the efficiency of the process minimising their investment in back office resources and IT.
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Notes to editors:
Monte Titoli S.p.A
Monte Titoli is a leading provider of efficient and secure financial market post-trade services, across pre-settlement, settlement, custody and asset services. Monte Titoli operates a sophisticated platform providing on-exchange and OTC trade matching and confirmation as well as offering a highly efficient European settlement system and custody service for safe keeping across asset classes. Monte Titoli has an extensive international customer base of over 400 banks and brokers, CCP’s and trading venues and offers its services to more than 2,000 issuers. Monte Titoli S.p.A is owned by the international diversified exchange business, London Stock Exchange Group.
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) sits at the heart of the world’s financial community. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, offering UK and Russian derivatives trading, pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe’s capital markets.
The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world access and an extensive range of real-time and reference data products and market-leading post-trade services. The Group is also home to a world leading index provider FTSE, which creates and manages over 200,000 equity, bond and alternative asset class indices.
Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1,900 people.
Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com