Liquidity Marketplace | LMX Liquidity Marketplace
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SOLUTIONS

LMX LIQUIDITY MARKETPLACE

A Liquidity Marketplace for Banks, Financial Institutions, and Corporates.

A peer-to-peer marketplace for corporates, banks and non-banking financial institutions looking to source and deploy short-term liquidity – where investment grade institutional members invest and borrow with each other without intermediation.

HOW THE MARKETPLACE FUNCTIONS

The construct and simplicity of the STABL contract allow for peer-to-peer trades that have traditionally been dependent on intermediaries.

STABL Contracts

The Marketplace is underpinned by Short-Term Agreements for Bi-Lateral Lending (STABL) contracts and allows peer-to-peer trades without the need for an intermediary.

 

The contracts utilize a standard set of terms and conditions. The only parameters that change from one trade to the next are counterparty, duration and discount yield.

Designed for Simple Execution and Robust Risk and Control

LMX STABL is a commercial loan between you and the counterparty with terms and conditions that are the same for each trade.

Connect directly to chosen counterparties with no intermediation – no rating agency fees, no legal expenses.

Total control of exposure – LMX Members select their counterparties and set the limits that meet their risk profile.

STP enabled – all post trade confirmations and data are available via a channel and format that ensures no manual intervention is required.

Zero subscription and zero Implementation costs – Members only pay for what they trade.

Fill end of day needs with a solution that is available later than those that rely on clearing houses.

HOW TO TRADE

Placing and acting on orders in the Marketplace

Members can transact in standard durations via the LMX Open Market tab or publish their own curve to their preferred counterparties.

Investors and borrowers’ orders that cross are automatically matched and filled.

For Members that want to negotiate a better price, they can send an RFQ directly to the counterparty.

Investors have full transparency of prospective borrowers’ entity and associated rating.

Initiating and acting upon a Request For Quote (RFQ)

RFQ functionality allows discrete price negotiation between two counterparties.

Members can direct RFQs to individuals, groups, or all counterparties and work directly with them to achieve their targeted notional, return and duration.

Members can use the RFQ function to borrow for a bespoke duration.

Members select counterparties that align to their criteria and work directly with them to achieve their targeted notional, yield and duration.

HOW TO TRADE

Placing and Acting on Orders in the Marketplace

Members can transact in standard durations via the LMX Open Market tab or publish their own curve to their preferred counterparties.

Investors and borrowers’ orders that cross are automatically matched and filled.

For Members that want to negotiate a better price, they can send an RFQ directly to the counterparty.

Investors have full transparency of prospective borrowers’ entity and associated rating.

Initiating and acting upon a Request For Quote (RFQ)

RFQ functionality allows discrete price negotiation between two counterparties.

Members can direct RFQs to individuals, groups, or all counterparties and work directly with them to achieve their targeted notional, return and duration.

Members can use the RFQ function to borrow for a bespoke duration.

Members select counterparties that align to their criteria and work directly with them to achieve their targeted notional, yield and duration.

HOW TO CONTROL YOUR COUNTERPARTIES AND EXPOSURE

Flexible functionality provides treasury administrators with efficient governance and control of trading exposure.

TREASURY FUNCTION

FLEXIBILITY & CONTROL

Members are in complete control of the counterparties, industries, and ratings.

As mandates and strategies change, limits and spreads can be changed on a selective and/or wholesale basis.

CREDIT LIMITS & RISK MANAGEMENT

Flexible functionality provides Treasury Administrators with efficient governance and control of trading exposure.

TREASURY FUNCTION

FLEXIBILITY & CONTROL

Members are in complete control of the counterparties, industries, and ratings.

As mandates and strategies change, limits and spreads can be changed on a selective and/or wholesale basis.