Fnality and HQLAX complete cross-chain intraday repo settlement testing
18 June 2024 UK
Image: stock.adobe.com/MarutStudio
Fnality and HQLAX have completed the initial end-to-end testing of cross-chain intraday repo settlement.
The testing follows the firms' first proof of concept delivery versus payment repo settlement in Q4 2022.
The PoC was the first cross-chain repo swap pilot across R3s Corda platform and Enterprise Ethereum. According to the two firms, it set the foundations for the "rapid settlement" of intraday transactions.
The firms claim that this testing paves the way for the precise control and easy mobility of liquidity and collateral, ensuring the clearing of wholesale payments in minutes with unprecedented visibility and control.
They continue to add that the success of the tests will enable the ability to settle at a precise moment in time.
Simone Cortese, director of Product Management at Fnality International, says: [This] showcases a complete end-to-end process: from a trade originating in Eurex to the transaction settling seamlessly and atomically across FnPS and HQLAX in mere seconds.
As we stand on the cusp of our first real live transaction, we are poised to unlock groundbreaking opportunities within the intraday finance sector.
Guido Stroemer, CEO at HQLAX, adds: Interoperability across DLT platforms is a core functional requirement for a robust DLT ecosystem for capital markets, which is why we are so pleased with our successful collaboration with Fnality on this transformative DvP use case.
The testing follows the firms' first proof of concept delivery versus payment repo settlement in Q4 2022.
The PoC was the first cross-chain repo swap pilot across R3s Corda platform and Enterprise Ethereum. According to the two firms, it set the foundations for the "rapid settlement" of intraday transactions.
The firms claim that this testing paves the way for the precise control and easy mobility of liquidity and collateral, ensuring the clearing of wholesale payments in minutes with unprecedented visibility and control.
They continue to add that the success of the tests will enable the ability to settle at a precise moment in time.
Simone Cortese, director of Product Management at Fnality International, says: [This] showcases a complete end-to-end process: from a trade originating in Eurex to the transaction settling seamlessly and atomically across FnPS and HQLAX in mere seconds.
As we stand on the cusp of our first real live transaction, we are poised to unlock groundbreaking opportunities within the intraday finance sector.
Guido Stroemer, CEO at HQLAX, adds: Interoperability across DLT platforms is a core functional requirement for a robust DLT ecosystem for capital markets, which is why we are so pleased with our successful collaboration with Fnality on this transformative DvP use case.
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