February 7, 2023

10 things you should know about Tradeteq CONNECT

With Casey Bell, Client Partnership Lead, Tradeteq

In this article, we speak to Casey Bell, Client Partnership Lead at Tradeteq, as she gives a rundown of the most frequently asked questions about the Tradeteq CONNECT proposition.

1.     So, what is Tradeteq CONNECT?

Tradeteq CONNECT allows Banks to connect with other Banks and Credit Insurers to distribute FI Risks such as: Letters of Credit (LC's), Trade Loans and Guarantees.


2.    What is the Tradeteq CONNECT USP?

We provide the market infrastructure to support all the participants in the ecosystem starting with a secure, private permissioned network. Our technology automates the trade asset distribution workflow across the instrument lifecycle. It allows customers to extend their reach to counterparties on the platform, enabling the processing and management of large volumes of trade assets whilst eliminating manual errors and reducing costs.


3.    What type of clients would use Tradeteq CONNECT?

Counterparties that use our technology to distribute their FI Risks fall into two categories: Banks and Credit Insurers. The distribution of risk can occur between Banks and other Banks or from Banks to Credit Insurers. On our platforms, the party (a Bank) transferring the risk are classified as a Grantor, the party accepting the risk is a Participant - the Participant can be another Bank or a Credit Insurer.


4.    How do Grantors and Participants work together on the Platform?

Our infrastructure plugs into back-office systems of a Grantor bank to extract assets for distribution. These assets can be distributed to participants such as other Banks, Insurance carriers and even Insurance Brokers.

The connectivity that we are enabling between grantors and participants allows for a streamlined distribution of single or pooled assets between the two parties.


5.    What are the key features of Tradeteq CONNECT?

The key features you can expect with CONNECT are:

a)     the Limit System: we have a configurable limit system for asset selection. Criteria can easily be configured to generate the rules profile most relevant to each party’s distribution business.

b)     Document Automation: our automation tool provides and populates standard distribution documents that can be tailored, updated, and adjusted to each party’s requirements.

c)     Tracked negotiation: the negotiation tool creates a fully auditable trail of all exchanges with clients that go through the platform. Data can be easily exported, shared, and reviewed.

d)     Reporting automation: the distribution automation tools transform the reporting process and streamline the production of key reports on all aspects of asset distribution.

e)     Analytics: we can provide data insights in real-time, allowing clients to make the best decisions possible when distributing assets. Our customisable cloud-based dashboards provide all distribution data in one place and allow you to dig down into specific aspects of their distribution business.


6.    Can you tell us a bit about the platform’s automation features?

Sure! The platform automates the entire lifecycle of the transaction making it quicker and more efficient than the traditional route. It can be configured to automatically select assets for distribution. It provides the ability to monitor assets, trades, and key lifecycle stages. We allow our CONNECT clients to scale quickly, drive trading volumes and velocity.


7.    What are the main benefits of using Tradeteq CONNECT?

There are many benefits of using CONNECT, the main ones being - automation, seamless system integration and access to real time information. There is a credit limit management tool and if required a syndicated insurance option.

CONNECT allows our clients to have diversification throughout their portfolio whilst also serving as a new business origination channel - as parties on the platform connect, interact, and transact.  

8.    How do I go about signing up?

You can follow this link which will put you in touch with our Sales team. They get you onboarded and then you’ll be able to:

a)     Sign up to the platform

b)     Receive a welcome email

c)     Sign the platform terms and conditions

9.    What can I expect after signing up?

Once you sign the standard platform master agreement, we will kick off the configuration process based on your workflows, instrument types and data fields. From there, you can start to begin trading with your counterparties.

10.  Is there a fee to join Tradeteq CONNECT?

The fees differ by Party. Banks vary as they are based on package selection whereas Insurers have a flat fixed fee. For Insurers it is free to join the platform, upon execution of a transaction a fee of 3.5% of the premium is charged.