Frontclear is the development finance company dedicated to money markets. We provide: 1) credit guarantees to cover counterparty credit risk in repo, derivative and securities lending transactions, and 2) technical assistance in partnership with regulators and industry bodies, to build the required skills, regulatory frameworks and market infrastructure.
Paul Muthaura, Chief Executive, Capital Markets Authority
“The Authority and the wider capital markets and banking industry in Kenya have benefitted immensely from working closely with Frontclear since 2016 given their pragmatic and solutions focused approach. We have managed to develop credible, world class, market based solutions relating to full operationalisation of GMRA and ISDA standards in Kenya which are in their final stages of statutory and regulatory implementation.”
Richard Comotto, Senior Visiting Fellow, ICMA Centre at the University of Reading in England
“SMEs generally deal with small banks, which are frozen out of the Kenyan interbank market. Most small banks are worried about liquidity, and therefore have huge excess prudential balances at the Central Bank, which is a very inefficient use of liquidity. Frontclear’s focus is highly appropriate to freeing this up.”
Koko Bola Onadele, Managing Director/Chief Executive Officer, FMDQ Group
“In our stride to position our markets on the path of increased liquidity and global competitiveness, the FMDQ-Frontclear guarantee fund initiative is a landmark achievement positioned to engender market integrity, which will bolster liquidity and financial system stability in the Nigerian economy.”
Robin Sherbourne, Head of ODI Fellowship Scheme, Overseas Development Institute
“The ODI Fellowship Scheme provides capacity to developing country governments in economics and statistics where gaps in local capacity exists. The target beneficiaries for this partnership with Frontclear can employ high caliber economists to improve their ability to strengthen the understanding and capacity of money market regulators.”
Allan Malvar, Managing Director, Head Corporate Communications & Membership, ICMA
“As a provider of standard documentation and education for the international repo market, ICMA greatly values its partnership with Frontclear in encouraging the use of repo in frontier markets. Our experience with Frontclear in supplying technical expertise for the repo product in markets in Africa and Central/Latin America has shown the potential of their approach for fast-tracking market development and we hopeto extend our joint endeavour to other developing regions.”
Jérôme Sabah, Global Head of Rates, Credit and Forex Sales for Financial Institutions, Societe Generale
“The Societe Generale is delighted to have concluded this transaction with Frontclear allowing Development Bank of Mongolia to hedge interest rate and currency risks related to its Samurai bond. It illustrates the strength of the collaboration between our two institutions, Societe Generale and Frontclear, which share the common objective to participate to the development of capital markets in emerging countries.”
George Asante, Head of Global Markets Africa (ex SA), ABSA
“Our partnership with Frontclear and this investment in the FTAP Partnership Facility is a further demonstration of Barclays Africa Group’s commitment to expanding and deepening financial markets across Africa.”
Daniel Hanna, Global Head of Public Sector and Development Organisations, Standard Chartered Bank
“As a leading international bank in Africa, we remain committed to providing financial structures which not only provide bespoke solutions, but also bring the right partners together to deliver sustainable benefits. We look forward to delivering further value to other clients in partnership with Frontclear.”
Reggie Mlangeni, Regional Head East Africa Client Solutions, Standard Bank
“With this transaction, Standard Bank, Commercial Bank of Africa and Frontclear worked together as partners to develop Kenya’s domestic financial markets. The market development initiative and focus of Frontclear assisted with lobbying the various regulating bodies in Kenya as a collective. We were able to transact under global industry-standard documentation. We see this type of transaction as key to developing deep and liquid financial markets in Kenya and across Africa as a whole.”
Herbert Wigwe, Group Managing Director, Access Bank PLC
“We are pleased to partner with Standard Chartered and Frontclear in this innovative solution as it provides us an opportunity to continue to provide FX solutions to our clients within the context of the current operating environment. We are also pleased to be counterparty to Frontclear’s first transaction in Nigeria and we look forward to expanding our partnership with other Africa-focused Developmental Financial Institutions.”
Pauline Engelberts, Global Chief Operations Officer, ABN AMRO Clearing Bank
“ABN AMRO Clearing wants to lead the way to safe and transparent markets, as the need for dependable, stable, accessible markets is greater than ever. We are taking our societal responsibility to the next level by teaming up with Frontclear as a complementary partner. We commit to making our staff available to support initiatives that make local interbank markets in emerging and developing countries more transparent and efficient."
Arnold Bagubwagye, Deputy Director Financial Markets, Bank of Uganda
"The development of the money markets is one of the priorities to building liquidity in Uganda's financial markets. Bank of Uganda's partnership with Frontclear in building a well-functioning money market shows clear commitment by the Bank to deepen the Financial Markets as part of the efforts to position Uganda as a desirable destination for investment."
Amgalan Battulga, Head of Treasury Management, Development Bank of Mongolia“The increased funding options and reduced risk exposure have proven beneficial to DBM and our client business. The bank’s on-lending in local currency – MNT – has not pushed the forex risk to the borrowing clients. In the long-term, this improves the asset quality of the bank’s client portfolio and the options to the clients themselves.”
Lungisani Zulu, Sr. Legal Counsel Legal Services Department, Central Bank of Zambia”The Zambian market recognizes Frontclear as a neutral party committed to our local money market development, bringing expertise, networks and convening power among local and global parties.”
Director Emerging Market Sales, Global bank London-based“Our relationship with Frontclear has brought us new transaction opportunities and reduced our costs of doing business in EMDC. It’s the local legal understanding translated to solidly structured legal documentation plus guarantee structures that dramatically reduce our credit and legal concerns.”
Wendy Rodriguez, CFO Banco del Austro, Ecuador“The transaction would not have been possible without Frontclear having played a catalytic role. The local bonds would never have been accepted as eligible collateral by off-shore lenders without the Frontclear guarantee and relationship-brokering.”
Bernardo Alfaro Araya, Superintendent of Financial Institutions (SUGEF), Costa Rica“Frontclear delivered an ISDA and Derivatives course to our market. While those attending confirmed a better knowledge, the most important result has been our shared understanding that the market’s legal issues remain and that the wider legal framework must be addressed.”
Dr. Ernest Addison, Governor, Bank of Ghana“Since Frontclear’s advisory and support to the development and launch of the Ghanaian Repo Market Guidelines, the Bank of Ghana has been approached by many global capital market investors and by local banks alike… all expressing an interest to conduct repo transactions under the global GMRA standard.”
Lisa Cleary, Senior Director, Associate Counsel, International Capital Markets Association (ICMA)“Since 2018, ICMA and Frontclear have been working together as part of a Memorandum of Understanding (MOU). ICMA is pleased to be involved in such countries, via Frontclear, because at the early stages of market development it is useful to critically assess the legislative framework and establish market best practice.”
Sam Aidoo, Deputy Managing Director, Fidelity“We have teams at Fidelity that specialize in a number of sectors that support Ghana’s real economy. The manufacturing sector is one such area of focus for us. Having access to short-term wholesale liquidity is integral to adequately supporting many of these industries. The experience and awareness created by the transactions through Frontclear coupled with the drive of our committed regulator (Bank of Ghana) is allowing us to better respond to our clients that support Ghana’s economy.”
Jérôme Sabah, Global Head of Fixed Income & Currencies Sales for Financial Institutions, Societe Generale“Both our Ghana trades would never have been possible without the Frontclear guarantee, local relationships and knowledge. It has been a real added value to close under global best practice GMRA documentation following the launch of the Ghana Repo Guidelines. By leveraging on our solid expertise of collateralized financing solutions and partnering with development institutions like Frontclear, this challenging experience enabled us to explore this new local market.”
Yao Abalo, Managing Director, Central Securities Depository, Ghana“The first diagnostic workshop with Frontclear and their partner ABN AMRO Clearing Bank (AACB), was largely focused on fact finding. But at the same time, we at the CSD became much more aware of potential challenges in the settlement process and the importance of reducing the risks up-front to reduce reliance on a Settlement Guarantee Fund.”
latest from frontclear
Frontclear facilitates an ISDA-documented landmark cross-border repo transaction with State Bank Mongolia and EBRD9 July 2020
July 2020. Frontclear arranged, structured and guaranteed a USD 23 million cross-border repurchase transaction with State Bank LLC (State Bank) in Mongolia and the European Bank for Reconstruction and Development (EBRD).
Frontclear and White & Case team-up to build knowledge on derivative documentation in frontier markets5 July 2020
AMSTERDAM / NEW YORK CITY JULY 2020 – Frontclear and global law firm White & Case LLP signed a Grant Agreement, thereby formalizing their shared commitment to support the knowledge needs of bank staff in emerging and frontier markets (EMDCs) in Africa, Asia and Latin America. White & Case, working on this pro bono, and Frontclear are partnering to produce an easy to use handbook: A Rough Guide to ISDA for Non-Lawyers and Operational Bank Staff
Frontclear and Clearstream partner to furnish insights into clearing and settlement developments in frontier markets3 June 2020
AMSTERDAM, LUXEMBOURG, 3 June 2020 – Frontclear and Clearstream have signed a grant agreement, thereby formalizing their shared commitment to address clearing and settlement challenges in emerging and frontier markets (EMDCs) in Africa, Asia and Latin America.
frontclear is seeking to scale and partner
Having demonstrated its development impact rationale and financial viability since 2015, Frontclear is seeking to significantly scale up and deepen its partnerships with key development institutions.
Come join Frontclear by answering the call to local money markets development.