Securities Financing Technology News | Asset Management Exchange unveils securities financing service
The Asset Management Exchange (AMX), which offers a cloud-based platform for asset managers, institutional investors and their intermediaries, has extended its services with the addition of a securities financing program.
The new service went live in July and will be introduced in “as many funds as needed,” over the next six months, according to Kerrie Mitchener-Nissen, AMX’s product manager.
“Since we introduced the platform early in the summer, the credit market was a bit soft, which wasn’t too surprising. I expect it will open after the summer, ”Mitchener-Nissen told SLT.
“Having said that, customer feedback on the program has been plentiful and as we roll it out more and more customers have inquired about our capabilities. We will add more products to the program on a phased basis.
AMX is currently working with two lending agents and Mitchener-Nissen said the platform could partner with more banks as needed, depending on the growth in lending volume.
Clients benefit from a generous 80-20 split on loan income, shared between the asset owner and the lending agent. AMX does not take a cut.
“The market, in general, offers a 70 to 30% income split between the beneficial owner and the agent lender,” explains Mitchener-Nissen. “We favor the fund and investors more, so we are proposing an allocation of 80 to 20%. “
Additionally, AMX says its service will remove barriers to lending under the Securities Financing Regulation.
Investors will be informed of the use of any securities lending in semi-annual reports when required and annual reports.
The platform will also oversee transactions sent by counterparties to the trade repository, such as the Depository Trust & Clearing Corporation, while AMX’s compliance function monitors all transactions and aims to ensure that reports are in compliance with SFTR.
What is AMX?
AMX was launched in February 2017 with the mission of standardizing, centralizing and streamlining processes for its buy-side clients.
“We want to take all non-investing activities away from them and allow them to do what they do best: manage portfolios and generate returns,” says Mitchener-Nissen.
“Among other things, this means that we take care of a lot of tedious activities such as managing relationships with third party service providers, regulators and auditors. “
AMX offers products in all asset classes and recently surpassed $ 20 billion in assets on the platform.
An in-depth conversation with Kerrie Mitchener-Nissen on AMX’s enhanced range of services appears in the latest issue of SLT.