The Asset Management Exchange (AMX), which offers a cloud-based platform for asset managers, institutional investors and their intermediaries, has expanded its services with the addition of a securities financing program.
The new service went live in July and will be pitched to “as many funds as needed” over the next six months, according to AMX product manager Kerrie Mitchener-Nissen.
“Given that we introduced the platform at the start of the summer, the loan market has been a little soft, which was not too surprising. I expect it to open after the summer” , Mitchener-Nissen told SLT.
“That said, customer feedback on the program has been strong, and as we roll it out, more and more customers have inquired about our capabilities. We will add more products to the program in a phased approach.
AMX is currently working with two lending agents and Mitchener-Nissen says the platform may partner with more banks as needed, in line with growth in lending volume.
Clients benefit from a generous 80-20 split on loan proceeds – shared between the asset owner and the lending agent. AMX does not take a cut.
“The market, in general, provides a 70-30% revenue split between the beneficial owner and the lending agent,” says Mitchener-Nissen. “We’re pushing more in favor of the fund and the investors, so we’re suggesting an 80-20% split.”
Additionally, AMX claims that its service will remove barriers to lending under the Securities Financing Transactions Regulation.
Investors will be informed of the use of any securities lending in semi-annual reports, if any, and in annual reports.
The platform will also oversee transactions sent by counterparties to the trade repository, such as the Depository Trust & Clearing Corporation, while AMX’s compliance function monitors all transactions and aims to ensure that reports are SFTR compliant.
What is AMX?
AMX was launched in February 2017 with the mission of standardizing, centralizing and streamlining processes for its buy-side clients.
“We want to take all non-investment activities away from them and allow them to do what they do best: manage portfolios and generate returns,” says Mitchener-Nissen.
“Among other things, this means we take on many time-consuming activities such as managing relationships with third-party service providers, regulators and auditors.”
AMX offers products across all asset classes and recently surpassed $20 billion in assets on the platform.
An in-depth conversation with Kerrie Mitchener-Nissen about AMX’s enhanced service suite appears in the latest issue of SLT.
