TFD Initiative Attracts 15 New Members

TFD Initiative has established the largest business community of trade originators, credit insurers, institutional funders and their service providers committed to increase the level of automation and transparency in trade asset and risk distribution on the basis of technology-based market practices.

Initiated in 2018 by Tradeteq through the Fintech Committee of the International Trade and Forfaiting Association (ITFA), TFD Initiative immediately attracted major institutions in Q1 2019. “From the start of the initiative, we have concentrated on applying technology to make bank-originated trade assets and risks far more accessible and transparent to institutional investors, credit insurers and banks. Automation is a key differentiator in high-volume and low-yield environments.”, says André Casterman, Board Member and Chair Fintech Committee at the International Trade and Forfaiting Association (ITFA).

“The sustainable access to a new category of investors is pivotal to a successful global commodity trade finance franchise, enabling ING to continue servicing its growing global client base in a capital efficient way”, says Maarten Koning, Global Head of Trade and Commodity Finance, ING.  

Christoph Gugelmann, CEO of Tradeteq confirms the opportunity for the industry: “With bank-intermediated trade finance measured in trillions of dollars, even with a few hundred billion in outstanding investment flowing into trade finance from institutional investors, money market funds, wealth funds, family offices and so on (even retail, one day), it will not just be a game changer for global trade but also for many economies.”

Bertrand de Comminges, Global Head Trade Finance Investments, Santander Asset Management adds: “As a fund manager, we want to source assets from multiple trade originators. This greatly contributes to our diversification strategy.  We look forward to benefit from the harmonised market practices that TFD Initiative is introducing in the market. This helps all stakeholders align on legal set-ups and operational processes, and will support the industry ambition to scale the distribution space.“

Discover the list of new members of TFD Initiative by consulting the full announcement.

Sean Edwards, Chair, ITFA confirms ITFA’s ambition: “Institutional investors represent a major opportunity for trade banks. It is imperative that we continue to establish our business as an attractive and easily accessible asset class to those new funding partners. The ultimate objective is to help our core membership fill the trade finance gap through increased capacity for SME financing.”

For more information on TFD Initiative, please consult www.tradefinancedistribution.com.