The Industrial and Commercial Bank of China (ICBC) has joined the tri-party repo service of Clearstream, Deutsche Börse Group’s post-trade services provider.

ICBC is the first Chinese financial institution to do so, enabling clients to participate in tri-party repo under title transfer with offshore counterparties. This marks a significant step in strengthening the Chinese repo market with a secure and efficient tri-party offering, enhancing its attractiveness and fostering further growth.

The repo market is essential for liquidity management within China’s financial system, serving as a vital funding source for institutions. Globally, and especially among central banks, commercial banks, corporates, hedge funds, and asset managers, tri-party repos are becoming increasingly popular. They offer an attractive balance of high safety and potential for greater returns compared to traditional money market instruments and bilateral repos.

For 30 years, Clearstream’s tri-party repo service has connected global market participants as a neutral intermediary, offering access to diverse and substantial liquidity pools. Clients benefit from simplified settlement, administrative support, and value-added services throughout the entire trade lifecycle, leveraging Clearstream’s expertise and efficient platform.

Hailu WANG, General Manager of Global Markets Department of ICBC, commented:

“We are happy to cooperate with Clearstream to be the first Chinese bank joining the tri-party repo business. Tri-party repo, by tapping into the collateral management service of third-party professional institutions such as Clearstream, provides higher efficiency and lower counterparty risk in the repo market. Looking into the future, we would like to join hands with financial peers to promote together the development of the repo market in China.”

Philip Brown, CEO at Clearstream Banking S.A., said:

“This partnership with ICBC represents a key milestone in bringing innovative tri-party repo solutions to China. It is a testament to our commitment to providing cutting-edge services that boost market attractiveness and support the evolving needs of our clients globally, a key ambition for Clearstream.”