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Industry roundup: 27 October 2020

Bolero to provide electronic bill of lading as-a-service in Latin America and Australia

Trade digitisation technology provider Bolero International has announced new partnerships with CommChain and Envoy to embed electronic bill of lading (eBL) into their blockchain-based digital trade platforms built on R3’s Corda. CommChain, based in Australia, and Envoy, based in Latin America, will use Bolero’s eBL as-a-service in their digital trade platforms built on distributed ledger technology. 

As part of Bolero’s broader strategy to establish itself as the platform-agnostic, interoperable eBL service specialist, it continues to invest in global partnerships with trade platforms across all leading blockchain platforms such as Hyperledger, Corda and Ethereum. Bolero provides eBL as a service to Contour, a trade finance network, and earlier this year, became part of the Marco Polo Network.

"These partnerships reinforce Bolero’s strategy of easing the adoption of eBL services globally and will help grow the Bolero network of banks, corporate and carriers," said Andrew Raymond, CEO of Bolero. "Collaborations with CommChain and Envoy are exciting because they share our vision of fully digital global trade finance flows with streamlined processes benefiting all parties.”


TARGET2 failure acknowledged by the ECB

The European Central Bank has reported that on Friday, 23 October, a major incident adversely affected the TARGET2 system, its participants and T2S actors. Due to an internal issue affecting the TARGET2 infrastructure, all settlement services became unavailable from approximately 14:40 CET. As a consequence, no payment, ancillary system instructions or liquidity transfers from/to TIPS and T2S could be processed for several hours. The ICM was also unavailable.

The ECB says that, after the necessary investigations, it appeared that neither the failover to the secondary site in the same region nor the opening of the contingency module were possible. To restore normal operations, it was necessary to move the production site from one region to the other. The failover was initiated around 20:30 CET and technically completed around 22:30 CET, after which the ICM was available again. Settlement services were then progressively restarted. The settlement of FIN messages could only be fully resumed around 01:20 CET on the Saturday, 24 October.

The system closed for value date 23 October at 3:30 CET on Saturday 24 October, after all pending instructions had been processed. All participants subsequently received the end-of-day statements reflecting all transactions settled for value date 23 October. The ECB has invited participants to complete their reconciliation for value date 23 October and to report on any mismatch to their national central bank.

This development follows the ECB Governing Council’s decision to extend the timeline of the T2-T2S consolidation project by one year. The pushback is designed to address the concerns of market participants that the current adverse environment would hamper their preparations.


BrokerTec launches dealer-to-client execution platform for US repo markets

BrokerTec, a provider of electronic trading platforms and technology services in fixed income markets, has announced its dealer-to-client request for quote (RFQ) trading platform, BrokerTec Quote, is now available to the US repo market through BrokerTec Americas.  The addition of US treasury repo to the BrokerTec Quote platform follows its launch for European repo, European sovereign debt and UK gilts repo market users in June 2019. 

"Repo market participants are increasingly focused on efficiencies, which is driving greater electronification of overnight and short-term lending markets amid increasing economic uncertainty," said John Edwards, global managing director of BrokerTec. "BrokerTec Quote and its enhanced RFQ functionality will meet this demand by enabling clients in the US to more effectively manage positions and access liquidity, whilst automating their end-to-end repo execution workflow."

Clients using BrokerTec Quote will also benefit from the ability to enhance existing dealer-to-client relationships and RFQ workflow. The service allows users to automate their audit trail from start to finish and access BrokerTec Analytics, which provides clients with historical and individual trade performance data to better understand the cost to trade and inform future trading decisions.

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