ING Group has partnered with Tradeteq to distribute its commodity trade finance exposures to non-bank institutional investors.

Tradeteq operates the trade finance industry’s first electronic trading platform, which allows banks to package their exposures into standardised, investable notes for non-bank institutional investors.

It facilitated a transaction between ING and Federated Hermes, a large American institutional investor, on 4 February.

Anthony Van Vliet, global head of trade and commodity finance at ING, commented: “This transaction shows how Tradeteq’s electronic platform facilitates the distribution of an asset class with short duration in an efficient manner, something not possible until now.”

Trade finance has a lower risk profile compared to other financial markets, as it is based on tangible flows of goods and services, making it less susceptible to bouts of volatility, while default rates for trade finance products are lower.

ING stated that this presents a compelling investment opportunity for institutional investors seeking stable, long-terms yields – and the Tradeteq platform now makes this asset class more accessible.

Share Story: