Steps Ahead

Global participants optimise repo balance sheets in real-time with Mosaic’s analytics

London, 18 April 2023: Mosaic Smart Data (Mosaic), the real-time capital markets data analytics company, has added support for repo instruments to its innovative AI-powered platform. The service is already in live deployment across the sales and trading desks of global banks.

The new repo addition was developed in response to the growing demand from banks for the ability to optimise their balance sheets by having a real-time and historical view of repo transaction data across all client accounts – and being able to convert this data into actionable intelligence at the click of a button.

The Mosaic platform aggregates the entirety of a bank’s repo data (electronic and voice), normalises it and applies machine learning and advanced AI to extract actionable insight from it. The net result for the bank is the construction of a real-time and historical balance sheet that enables its staff to suggest appropriate opportunities to clients at exactly the right time, driving deeper relationships and more profitable trades.

According to ICMA, the total value of outstanding repo contracts in Europe hit a new high of EUR 10,374 billion in December 2022, up 12.8% year-on-year. Meanwhile, it reported a continued acceleration in the growth of turnover on automatic trading systems in the interdealer segment.

The shift to automated and often ultra-low latency electronic trading and the increase of new diverse participants, combined with the ever-growing amount of data generated from increasing volumes, has emphasised the urgency for banks to be able to view all repo transaction data from across the organisation and external sources, and react in real-time.

Mosaic offers real-time custom alerts and automated reporting, seasonality alerts (for example end of month, quarter or year), flow insights, client defection alerts, profitability-based insights, and anomaly detection. This helps identify anomalous behaviour of gross and net balance sheet consumption compared to an average over a 30-day look-back period, and enables banks to drill down to granular detail about client activity and business performance.

Matthew Hodgson, CEO and founder of Mosaic Smart Data, said: “The bond markets have been under the global spotlight in light of recent events in the banking sector, highlighting once again the importance of being able to react incredibly quickly, equipped the right insights, when the chips are down. We’ve already helped many leading global banks optimise their FICC trading operations with real-time, cutting edge analytics tools, and now we’ve extended that support to the repo market at a time when digitisation and trading volume growth continue at pace.”