Launched in association with Newedge, which is engaged in multi-asset brokerage, the platform has already registered its first trades.
With the help of new ACM platform, investors will be able to enter into secured money market investments using the tri-party repo mechanism.
It has been launched in response to increasing demand from institutions for a solution to the cash management challenges currently being faced by both the buy- and sell-side.
The platform uses the same technology that facilitates the MTS fixed income trading market, combining secure investment opportunities with the high levels of transparency offered by electronic trading.
Under a repurchase agreement, also known as a repo or sale and repurchase agreement, investors lend cash for a short period of time to another party.
Financial securities are used as collateral for the loan, together with an agreement for the seller to buy back the security at a pre-agreed rate of interest and an agreed term.
The ACM platform allows investors to select acceptable counterparties, rating of collateral, currencies and trade duration.
MTS Money Market Product Manager Oliver Clark said ACM introduces the tri-party repo mechanism to a new group of participants in the form of corporates, hedge funds and securities lenders in a competitive, electronic auction platform.
"The cash providers benefit from the security of tri-party repo in place of unsecured money market products and their counterparty banks with an alternative source of funding," Clark said.
