fully Secured.
Sophisticated and institutional depositors access
Book a Demo
Secured Deposit Service
Eligibility criteria?
Minimum deposit c.£10mil equivalent (c.£250k minimums with aggregation);
Maximum deposit is set by each bank (c.£1bil TBA);
Subject to terms and CDD / KYC assessment
Users must be:
Government / Supranational agency
Regulated financial services business
Corporate entity with regular cash liquidity
Indviduals defined as an 'Expert Investor' under the Jersey Expert Fund Guide
How?
We, as your nominee, place the cash deposit with your selected bank for your selected tenor;
The bank simultaneously provides ringfenced collateral for the same value and tenor;
If the bank defaults, the collateral is sold and you retain the proceeds.
Bank Benefits
- liquidity - SDS transactions are treated favourably by banks as the liquidity restrictions associated with traditional unsecured cash deposits often do not apply:
- balance sheet - as the bank is releasing collateral in support of an SDS transaction, there is often a positive impact on their asset vs liquidity ratio for the duration; and
- appetite for cash - as a result of the above, banks have a greater appetite for holding SDS deposits compared to traditional unsecured deposits and often offer higher interest rates as a result.
Your Benefits
With one SDS account you can place cash deposits with multiple banks and you can achieve:
- greater protection in the event of a bank default
- potential for better rates of interest
- access to more banks
- greater counterparty diversification
- faster access to your money in the event of a bank default
- choice of currency, tenor and collateral
- access to banks with greater appetite for cash balances
- faster access to new banking counterparties (existing panel banks only)
We do
- we also provide you the tools and secure infrastructure for you to access all of the benefits
- we establish all the necessary arrangements for you to access your chosen counterparties and for every secured deposit to be fully collateralised
- arrange the transactions and settlements as your agent and nominee
We don't
- hold your money as your money and collateral is ringfenced and we never take principal ownership
- have discretion in relation to your money or transactions
You select the:
or you can elect to use our existing banking counterparties
transaction size - subject to a minimum £10m or currency equiv. or £250k+
on the basis of an aggregated transaction size of £10m+. Each bank may set different
minimum transaction sizes
tenor - from call (instant access, subject to cut off times), to notice and fixed term deposits from 1 to 365 days
currency - GBP, USD, EUR and other currencies as agreed with the counterparty, and
collateral - if specific collateral is requested interest rates may be lower. Generally broader collateral allows for
higher rates.
