impact strategy

Frontclear is strategically focused on developing stable, inclusive and liquid money markets through the powerful combination of guarantees and technical assistance. This is a long-term effort in many country contexts, while those more advanced step in at later stages. A nascent money market may require a possible 10 year commitment. As a conceptual guideline stemming from Frontclear experience to-date, our impact strategy can be divided into 3 evolutionary stages.

mid-development (3-5 years) enable development of on-shore local OTC money markets with domestic guarantee structures: bilateral tradeclear (multiparty) end-target (5-8 years) support the development of local market infrastructure GDP t opening (2-3 years) cross border guarantees: create access knowledge transfer identify barriers build exemplary transactions smart deployment of technical assistance: training legal and regulatory market infrastructure

stakeholder value

Frontclear and multiple global and local stakeholders, are dependent on one another to deliver development value to money markets.  As a trusted, neutral money market leader, we have built and continue to expand on this capacity to mobilize private, public and not-for-profit sector institutions towards this cause.

obligor banks beneficiary banks regulatory investors

value for obligor banks

  • (inter)national connectivity through new and re-established banking relationships
  • improved ability to manage liquidity
  • reduced cost of funding
  • better risk management and ALM
  • opportunities to expand knowledge and skills

value for beneficiary banks

  • market development for future business
  • capital relief under Basel III IRB
  • reduced legal and operational risk
  • profitability of transactions
  • tangible stewardship role

value for regulators

  • more liquid, stable and inclusive money market
  • better monetary policy transmission
  • improved price discovery and development of risk mitigating products
  • reduction of legal uncertainty
  • opportunities to expand knowledge and skills

value for investors

  • a strengthened local capital market for FI clients
  • collaborating to build money market expertise
  • supporting more robust and shock resistant financial systems
  • participating in a proven blended finance facility
  • ROI and development impact

implementing partners

It wouldn’t be possible to do this without the brokering services, knowledge and expertise and funding from additional parties to support transactions and the money market environment.

working with frontclear

“Frontclear is delivering stakeholder value to all its counterparties and partners and together, we are making money markets work for the real economy.  We’re keen to expand this network to deliver greater impact.”
—Philip Buyskes, CEO frontclear

To join us in this effort, see how

Read about frontclear stakeholder experiences

transaction portfolio

USD 476m guaranteed | USD 884m mobilized | USD 603m blended

 

example transactions

  • Access
  • ArmSwissBank
  • CBA
  • Fidelity Bank
  • State Bank

technical assistance portfolio

core activities

  • financial knowledge trainings completed

    Financial knowledge trainings completed

    37

  • Legal and Regulatory Advisory services provided

    Legal and Regulatory Advisory services provided

    17

  • Market Infrastructure Advisory services provided

    Market Infrastructure Advisory services provided

    5

  • Research projects carried out in collaboration with industry experts

    Research produced

    3

 

highlights

  • over 1000 obligors and regulators trained by second half of 2018

    >1000 trained

  • Legal and Regulatory Advisory services provided

    14 regulator and industry partnerships

  • “The activity contributed to your skills

    “The activity contributed to your skills, knowledge and/or awareness” 68% strongly agree, 32% agree

  • 200 citings in global and local media

    200 citings in global and local media

  • 11 TA country strategies based on full capital markets analyses

    14 TA country strategies based on full capital markets analyses