Agency Cash Management
Agency Cash Management (ACM) is an electronic trading platform that enables wholesale financial investors such as fund managers, corporates, treasurers and other buy-side institutions direct electronic access to the tri-party repo market through an auction facility.
ACM allows cash-rich investors to enter into secured money market investments via the tri-party repo mechanism as an alternative to the traditional suite of unsecured money market products. The use of a tri-party agent further enhances the offering by providing a robust settlement engine that includes segregation of assets and daily margining.
The ACM platform provides a new level of transparency and risk-management to an investor base that has become increasingly averse to the risks associated with the unsecured money markets and general counterparty exposure in the aftermath of the 2008 financial crisis. ACM allows competition for cash and best execution which is increasingly important to fund managers.
By bringing a new pool of cash providers to the market, the ACM platform also benefits banks facing continued pressure to diversify their sources of funding in the face of Basel III.
The platform has been built on the same robust technology that facilitates MTS’s regulated fixed income markets, combining secure investment opportunities with the high levels of transparency offered by electronic trading.
ACM was successfully launched in January 2012 as a joint effort by Newedge, a global multi-asset brokerage and clearing entity, and MTS Group, the premier facilitator for the electronic fixed income markets. ACM has secured very high profile mandates from both the buy-side and the banking community.