Tradeteq launches marketplace for secondary trading of trade finance assets

By Joy Dumasia

Tradeteq, the technology provider for illiquid credit distribution, has launched Tradeteq Access Lite, the first-ever marketplace for buy-side investors to participate in the secondary trading of trade finance assets. More than 40 members of the Trade Finance Distribution Initiative (TFDi), the industry-led group that sets the standards for global trade finance distribution, including leading asset managers, have already signed up to the platform. Participation is now open to credit funds, enabling them to capitalise on the growing multi-trillion-dollar trade finance asset class.   

Nils Behling, Co-Founder and CFO at Tradeteq, comments: “Trade finance offers tangible benefits to investors looking for alternative assets – particularly in today’s volatile climate. It’s low-risk and offers yield pick-up and uncorrelated assets that pay above commercial risk spread. The big obstacle has been lack of access, but Tradeteq Access Lite is a crucial step towards democratising the market, enabling investors to tap into its full potential.”   

Trade finance is a low-risk asset class based on the tangible flow of physical goods, making it less susceptible to volatility. The asset class is projected to reach $10 trillion by 2027, but the lack of a secondary market has so far restricted access to a small number of investors due to the need to repackage portfolio risk.   

Tradeteq Access Lite is the latest step in Tradeteq’s mission to turn trade finance into a liquid asset class. Investment managers get free access to a continuous deal flow from selected banks and non-bank originators and can manage the full end-to-end trading lifecycle. This includes instant notification of deals and the ability to match specific deal criteria, negotiate terms and execute trades. Investment managers also get free membership to the TFDi, enabling them to collaborate with the world’s largest network of trade finance originators, along with many of the leading credit insurers, asset managers and institutional investors.    

Tradeteq’s platform complies with the ISO27001 and SOC 2 security standards, GDPR controls and other global security, safety and data protection requirements. Users fully own and control the collection, usage and distribution of their information and data.   

IBS Intelligence also reported that Tradeteq, a technology provider for bank asset distribution, has selected United Arab Emirates as a base to service its clients in the Middle East, Africa and Indian subcontinent. The firm has incorporated an office at Dubai Multi Commodities Centre (DMCC), which opened in January 2022.