Who is Frontclear?
Frontclear is financial markets development institution focused in enabling more stable and inclusive interbank markets in emerging and frontier markets…
Frontclear guarantees counterparty credit risk in both over-the-counter and exchange traded markets, covering repos, derivatives, securities lending and trade finance instruments…
Trading with Us
Frontclear issues guarantees bilaterally to financial institutions and financial infrastructure providers. Eligible institutions include…
Frontclear facilitates a landmark transaction with State Bank Mongolia, EBRD and ING Bank
July 2018. Frontclear arranged and structured a USD 30 million cross-border collateral swap with the European Bank for R…
FMDQ and Frontclear partner to establish clearing infrastructure in Nigeria
31 May 2018. Today, FMDQ Clear Limited and Frontclear signed an agreement to jointly enhance Nigeria’s first central…
Frontclear’s FTAP training in Zambia features on page 4 of ACI Zambia’s newsletter
What the world is saying
Financial markets in emerging markets … [are] constrained by perceptions of high counterparty risk and often a limited supply of high quality collateral, contributing to high spreads …
Financial Stability Board, IMF and World Bank (2012). Financial stability issues in emerging markets (report to G20)
An important policy measure that has been proposed to stabilize interbank markets — especially in emerging economies — is to collateralize transactions in the interbank market.
World Bank 2013 Financial Development Report
Overall, this imbalance (unmet demand for SME loans whilst banks have excess liquidity) is a symptom of under-developed financial and securities markets. In a country like Nigeria, local banks' funds do not flow to the best lenders because there is not the necessary financial infrastructure for interbank lending.
HRH Maxima speech at TCX 5 year anniversary 2013
The lack of a functioning interbank market is a serious impediment to local banks servicing their clients. This impacts in particular less established and growing businesses. The beneficial effect of [interbank liquidity] on SME lending is … supported by anecdotal evidence from banks we’ve had discussions with … (it is also) underscored by ample evidence in economic papers; … policies designed in the Eurozone during the credit crunch after 2007 are reflected in the operating model of Frontclear.
Lion’s Head Global Partners
Efficiency of the interbank market can be seriously eroded if the banking sector is segmented.
African Development Bank (2014). Segmentation and efficiency of the interbank market...