HQLAx is a financial technology innovation firm that leverages distributed ledger technology to deliver liquidity management and collateral management solutions for institutional clients in the global securities financing markets.
The HQLAx value proposition is to improve collateral mobility across a fragmented securities settlement eco-system.
In the HQLAx operating model, there is no movement of securities between custodians. Instead, a digital collateral registry is used to record the ownership of baskets of securities, whilst the underlying securities remain in the custody location of the collateral giver.
Collateral upgrade transactions, evergreen / extendible maturities
Intra-day Liquidity Management
Transfer of ownership of baskets of securities intraday DvD
Pledge baskets of securities real-time
Mobilise hard-to-move assets
Why work with us
- redistribute liquidity more effectively and more cost efficiently;
- reduce drag on bank earnings due to inefficient HQLA portfolio management;
- enhance regulatory transparency of collateral chains – full on-line and real-time visibility of DCR life- cycle through issuance, ownership chains and redemption; and
- mitigate systemic risk by enabling orderly default unwinds
HQLAX is independent, which provides a non-aligned leader for a consortium of competing global banks, and successfully exhibited a proof of concept platform utilizing the latest in Distributed Ledger Technology in February 2017. Distinct from an industry utility or a trade association, the business will be run with a healthy bottom line. HQLAX combines a nimble footprint of experienced traders/developers with the backing of major market participants.
Banks are facing increasing regulatory requirements for liquidity and capital, which are pressuring their earnings; there is a clear market need for a platform that can source and monetize liquidity efficiently, effectively, and transparently
HQLAx is proceeding to be open for business with a production ready platform in 2019.
HQLAx is founded by industry veterans who, from the beginning, have worked in coordination with some of the largest global banks to craft a solution. HQLAx understands that early buy-in from the market’s leading experts and biggest actors is the only way to launch a successful platform.
Inter-operability across custodians
Transfer of ownership/pledge at precise times during the day
Reduction in intraday credit exposures
Reduction in intraday liquidity requirements
Reduction in fails
Regulatory Transparency and risk compression post-default
Scalable for future digitised assets
Eurex Repo electronic trading market
(new segment for HQLAx collateral swaps).
Ability to enter a specific opening/closing date & time
(to the nearest minute).
Digital collateral record (DCR) layer
Enables atomic change of ownership of baskets of securities.
Delivery vs Delivery “DvD”.
Trusted Third Party (TTP) Layer
Holds baskets of securities at multiple custodians on behalf of beneficial owners.
Initiation of exposure requests to triparty agent services.
Custody layer (triparty agents & custodians)
Safekeeping of securities in accounts opened by the TTP.
Collateral management of securities in and out of segregated TTP accounts.