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New DLT solution for the securities lending market: The HQLAx Operating Model

11 Dec 2019

New DLT solution for the securities lending market: The HQLAx Operating ModelRoadmap 2020 insights

Deutsche Börse Group is well on track with its growth strategy “Roadmap 2020”. We now want to take the opportunity to look back at our growth agenda and successes of the past months: in our series “Roadmap 2020 insights” we showcase exciting contributions and developments from our business areas.

Jens Hachmeister, Head of New Markets

Deutsche Börse and HQLAx jointly developed a solution for collateral swaps. The model is one of the first DLT-based applications for the financial services industry.

Deutsche Börse and its partner HQLAx successfully launched their jointly developed Distributed Ledger Technology (DLT) solution for frictionless collateral swaps in the securities lending market. The launch of the platform is an important milestone for the implementation of DLT in the financial services industry. It is a perfect example of how new technology can successfully be combined with trusted market infrastructure and demonstrates the power of innovation that DLT is already bringing to the financial services industry.

The HQLAx operating model facilitates more efficient collateral management of high-quality liquid assets (HQLA) – which are in heightened demand under Basel III regulations – and it allows market participants to connect to the platform via existing, well established interfaces. 

The HQLAx  Operating Model consists of four layers:

  • The leading Eurex Repo F7-trading system where transactions are executed,
  • the digital collateral registry layer enables delivery-versus-delivery (DvD) ownership transfers of baskets of securities,
  • the participating custodians/tri-party agents where the securities are deposited
  • and the Deutsche Börse-owned Trusted Third Party (TTP) entity which connects the custodians/tri-party agents to the digital collateral registry. 

As part of its growth strategy, Deutsche Börse Group focuses on investing in new technologies and the further development of DLT. The success of the HQLAx Operating Model is based on partnership. Deutsche Börse's cooperation with HQLAx extends across many business areas throughout the Group. But also global banks as well as the partner R3 were closely involved in the development from the beginning. In this way, a model designed by the market could be created for the market.

We spoke with Jens Hachmeister, Head of New Markets, about the background, the benefits for the securities lending market and next steps to follow.

Video: Successful launch of the HQLAx operation model


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Trust is essential for functioning markets and sustainable economies. At Deutsche Börse, we provide fair and transparent, reliable and stable infrastructures that ensure safe and efficient markets around the globe. By making markets work, we foster growth and contribute to the prosperity of future generations. In short: our purpose is to create trust in the markets of today and tomorrow.

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