Tradeteq’s Access Lite Supports Secondary Trading Of Trade Finance Assets
According to the latest news, Tradeteq, a leading technology provider for cash credit distribution, has introduced Tradeteq Access Lite, the very first marketplace for buy-side financial backers who want to participate in the secondary trading of trade finance assets.
With over 40 members of the Trade Finance Distribution Initiative (TFDi), the industry-led group that forms the standards for global trade finance distribution, including top asset managers, have proactively signed up to the platform. Currently, credit funds can also participate in the secondary market which enables them to capitalize on the increasing multi-trillion-dollar trade finance asset class. Earlier, Tradeteq’s deal with Microsoft to automate trade finance is also an example towards boosting the trade industry.
Trade finance is a low-risk asset class that relies on the tangible import-export of physical goods, making it less vulnerable to volatility. This asset class is estimated to reach $10 trillion by 2027 but the lack of a secondary market had the worst impact when it comes to providing access to a small number of investors because of the requirement of repackage portfolio risks.
Recently-announced Tradeteq Access Lite is a revolutionary step by Tradeteq towards its mission of transforming trade finance into a liquid asset class. Investment managers are capable of enjoying free access to a frequent deal flow from the chosen bank and non-bank originators as well as can handle the full end-to-end trading lifecycle. It includes faster notification of transactions and the facility to match particular transactional eligibility, negotiate terms & execute trades.
Not only this, but investment managers will also get free membership to the TFDi, so that they could communicate with the world’s largest network of trade finance originators, along with various leading credit insurers, asset managers, and institutional investors.
Tradeteq’s platform efficiency follows ISO27001 and SOC 2 security standards, GDPR controls, and several international security, safety, and data protection requirements. Clients completely own and regulate the collection, utilization, and distribution of their information and data.
The lack of a secondary trading market caused many corporations to be underserved when it comes to financing, contributing to a trade finance gap - the discrepancies between supply & demand - which is estimated at $1.7 trillion. By distributing trade finance assets to capital markets, banks will be capable of increasing their net interest income, utilizing their balance sheets, and doing more with less.
Nils Behling, Co-Founder, and CFO at Tradeteq remarked, “Trade finance provides tangible advantages to investors looking for alternative assets - especially in the present volatile climate. It is low-risk and facilitates yield pick-up and uncorrelated assets that pay beyond commercial risk spread. The big roadblock has been a lack of access but Tradeteq Access Lite is a vital step towards democratizing the market, empowering investors to utilize its full potential.”
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