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HQLAx

www.hqla-x.com

Fintech sector: Blockchain, Securities Lending

Country of incorporation: Luxembourg

Year of incorporation: 2018

Team names, roles
and company contact

Mr Guido Stroemer, CEO - Founder
Mr Olly Benkert, Chairman
Mr Nick Short, COO
Mr Rodney Jordan, IT Operations Manager

Elevator pitch

HQLAχ is an innovative, new collateral lending solution that will improve collateral fluidity, enhance market transparency and promote financial stability.

Problem solved

The implementation of new bank regulations for liquidity, mandatory clearing, and margin requirements for OTC derivatives have caused a significant increase in demand for High Quality Liquid Assets (HQLAs). As a result, there exists a heightened need for a marketplace to facilitate large scale, cost efficient collateral transfers across the global financial eco-system.

Solution / technology

HQLAχ provides improved collateral fluidity with an operating model that does not require securities to be moved across CSDs. A standardized and transparent marketplace, where regulators are provided with a “Digital Collateral Record” (DCR) tracking view with reduced systemic risks related to ”fire sales” and “fire buys”. HQLAχ uses Blockchain technology to exchange the legal-rights to “baskets” of securities held in custody by a trusted third-party to facilitate efficient liquidity management.

The solution comprises the following 3 layers:

Eurex Trading Platform Layer

R3 Corda Blockchain Distributed Ledger Technology Layer

Trusted Third-Party layer

Competitive

Founding members with many years of hands-on experience of liquidity management

Collaboration with Deutsche Börse Group – leveraging existing Trading Platform/Collateral Management technology & knowledge

Close product-development & validation collaboration with a core set of key financial institutions

Close collaboration with R3 for support with the Corda Blockchain platform

Working with one of the most well established and very highly respected legal

firms in Luxembourg to ensure that all regulatory and licensing aspects are

fully covered

No similar services exist today in this specific collateral-lending domain

Market size

€ 10.8 trillion HQLA outstanding, as per more recent Basel III monitoring report by the Basel Committee of Bank Supervision (October 2018).

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