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On 1 Dec 2015, a first RMB tri-party trade between ICBC Luxembourg Branch as cash giver and Banque Internationale à Luxembourg (BIL) as cash taker was conducted on Clearstream’s Tri-party Collateral Management Platform, the Global Liquidity Hub, marking the first ever RMB Tri-party repo transaction by a Chinese bank in Clearstream.
For this reverse repo, ICBC Luxembourg Branch provided RMB liquidity to BIL with a tenor of 2 weeks, collateralized by high investment grade sovereign bonds. Against the backdrop of tight liquidity on the offshore RMB market, encouraged by the IMF’s decision to include RMB into the SDR basket as from 1 October 2016, ICBC Luxembourg Branch took this move on the tri-party platform, aiming to provide another funding possibility for those...
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