Quadriserv selects Cinnober to provide equity repo solution for US

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Quadriserv is broadening its long-term relationship with Cinnober in a new equity repo initiative for the US market. Cinnober is currently a major technology supplier to Quadriserv’s AQS securities lending platform.

In the wake of earlier financial crashes and with steadily expanding government regulations, there is pressure on industry participants to address systemic risk concerns in the secured funding and tri-party repo markets. These crucial markets need efficient trading platforms that maximize liquidity, transparency and credit, together with risk management and clearing facilities.

“Regulators have been asking the industry to address vulnerabilities in the short-term funding market since the crisis in 2008. We believe our platform will supplement those industry efforts,” says Pat Cestaro III, CEO of Quadriserv. “This will be the first centrally cleared equity repo system in the US. Quadriserv’s AQS repo system is being designed to avoid the extension of intraday credit and improve funding stability, while creating a process to handle dealer default and minimize fire sale risk. We have encouraged a great deal of industry input from money funds, dealers and regulators alike to design a fair and transparent market. We are excited to partner with Cinnober to build this solution.”

The new equity repo trading engine is based on Cinnober’s well-proven TRADExpress multi-asset platform and is slated to go live during the latter part of 2014. The system architecture will provide operational stability as well as high-performance functionality.

“Once more Cinnober is delivering technology to an innovative market player,” says Cinnober’s CEO Veronica Augustsson. “We are proud and happy about strengthening our long cooperation with Quadriserv, and we’re looking forward to offering the repo market a technical solution of the highest quality — and continuing to contribute to confidence in markets in general.”

Quadriserv is an innovator of the CCP model based securities lending and equity financing industry. Through its wholly owned subsidiary, Automated Equity Finance Markets, Inc., Quadriserv operates AQS®, a centralized platform for securities lending.

Cinnober is a world-leading supplier of financial technology to marketplaces and clearinghouses. The client list consists of major global players with extreme demands on reliability and performance, including names such as BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, the London Metal Exchange, LME Clear, MarkitSERV and the Stock Exchange of Thailand.

For further information or discussion, please contact:
Fredrik Backlund
Head of Corporate Communications
Cinnober Financial Technology
Tel. +46-73 403 12 39
fredrik.backlund@cinnober.com

Member Services
Quadriserv
Tel. +1-201-499-1410
trading@quadriserv.com

About Quadriserv
Quadriserv is a leader in delivering transformational market structure changes to the securities lending/equity finance industry. Quadriserv, through its wholly owned subsidiary, Automated Equity Finance Markets, Inc., has developed the AQS® platform for securities lending. AQS, through its relationship with the OCC, operates a centralized marketplace for securities lending transactions in the U.S. As a FINRA member broker-dealer and a SEC regulated alternative trading system, AQS aims to maximize liquidity, access, credit and transparency, while mitigating systemic risk, through a fully automated trading environment. For more information about Quadriserv and the AQS platforms, please visit www.Quadriserv.com or www.TradeAQS.com

About Cinnober Financial Technology
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, Eurex, London Metal Exchange, LME Clear, Markit BOAT, MarkitSERV, NYSE Liffe and Stock Exchange of Thailand. For additional information, please visit www.cinnober.com

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Quadriserv is broadening its long-term relationship with Cinnober in a new equity repo initiative for the US market. Cinnober is currently a major technology supplier to Quadriserv’s AQS securities lending platform.
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Quotes

This will be the first centrally cleared equity repo system in the US.
Pat Cestaro III, CEO of Quadriserv
We are proud and happy about strengthening our long cooperation with Quadriserv, and we’re looking forward to offering the repo market a technical solution of the highest quality — and continuing to contribute to confidence in markets in general.
Veronica Augustsson, CEO of Cinnober
Regulators have been asking the industry to address vulnerabilities in the short-term funding market since the crisis in 2008. We believe our platform will supplement those industry efforts.
Pat Cestaro III, CEO of Quadriserv