CCRManager platform set to shake up secondary market for trade assets

News | 16 May 2017

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On 16 May, Singapore-based CCRManager announced the launch of an electronic platform that could mark a step change in secondary market liquidity for international trade finance assets.

The platform, supported in the first instance by 16 financial institutions and backed by the Monetary Authority of Singapore (MAS), has been developed for the distribution of trade finance, supply chain finance and working capital assets.

Users of the web-based CCRManager will be able to list assets for distribution, negotiate deals, and manage supporting documents in a secure environment. They will also have access to tools for data analytics, market benchmarking, and pricing indices.  

“There is nothing like this currently in existence,” Tan Kah Chye, chairman of CCRManager (and CEO of Tin Hill Capital) told TFR on the day of launch.

“It’s the only platform that supports secondary trading in this way as usually a bank with, say, a trade finance loan to its customer, will sell down directly to the secondary market with another insurer or customer via telephone, email or fax.”

The platform will enable users to choose to whom they want to sell their trade finance assets.

“For example, if you are UK bank and have given a loan to Tesco for US$50m and want to retain US$10m and sell down US$40m, you may not want to sell on to your domestic competitor and may instead want to extend to Bank of China or ICICI Bank in India, or UniCredit, and invite them to give you a price by a certain time, and then by market close, you may want to extend to the next five banks in your preferred list,” Kah Chye explains.

Bank of China, DBS Bank, ICICI Bank, Swiss Re Corporate Solutions, and UniCredit have signed up as pioneer members of the platform to support their trade risk distribution business globally.

Also, ANZ Bank, Bank of America Merrill Lynch, BBVA, Bank of East Asia, BNP Paribas, HSBC, Industrial and Commercial Bank of China, Mitsubishi UFJ Financial Group, Mizuho Bank, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation have signed letters of intent to become a member of CCRManager within the next few months.

Man Ka Kit, CEO of CCRManager adds, “We estimate that the secondary market for trade finance assets at approximately US$1.7trn is roughly 10% of global cross-border trade. As an infrastructure platform, we believe that CCRManager will address this entire market, help unlock more capital and increase the supply of trade finance globally.”

Surath Sengupta, HSBC’s global head of trade portfolio management, says, “We believe that this kind of digital platform will help meet trade financing needs globally and give more investors access to relatively low-risk assets. We’re also delighted to be part of another great collaboration between banks and fintechs.”

Kah Chye certainly has big plans for CCRManager, intending to sign up to 30 banks and financial institutions in short order, and as many as 400 by year five, which could garner US$250bn on the platform by 2022.

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