AREX — the Automated Receivables Exchange — is a financial technology company that aims to connect businesses to capital through an easy-to-use trading venue, where businesses can raise working capital using their sales receivables as means to issue Exchange Traded Receivables (ETRs). By connecting the businesses directly to the source of capital in an automated and market-driven manner, our mission is to make working capital financing fairer, more transparent and more accessible to all kinds of businesses European-wide.
We believe that by providing cutting-edge technology and having supply & demand as the driving force for pricing, everyone benefits. No middlemen and low overheads allow companies to raise capital more efficiently and cost consciously while providing lucrative opportunities for the institutional and professional investor.
On one hand, we partner up with leading accounting & factoring providers, P2P marketplaces and other invoice originators for allowing their clients access to the AREX exchange. On the other hand, we partner up with institutional and professional investors, such as hedge & quant funds, banks and other liquidity providers who are looking to deploy capital over the exchange. We let these two classes of clients meet each other without third-party intervention to directly buy and sell ETRs.
The AREX exchange is open for trading from 09:00 until 16:30 (Central European Time) on normal business days. ETRs can be generated and admitted into the exchange 24/7, however, normal trading hours dictate when liquidity providers will be active on the exchange and when buy/sell orders may be placed.
The company puts technology front and center in its operations. Having built the world's first exchange for transforming trade receivables into Exchange Traded Receivables, we know that a modern technology stack is a key driver for our competitiveness. Our platform comprises of an order management system, matching engine and a full clearing and settlement system — built in-house by our dedicated tech team — allowing us to process billions of euros on a daily basis.
AREX European Market Limited was registered as a SWIFT identified exchange in May 2016 and our Market Identification Code (MIC) is AREX. Particulars can be found on https://www.iso20022.org/.
Each invoice that is processed into an ETR will be given a unique identity number, which fully conforms with the International Security Identification Number (ISIN) widely adopted by the financial sector. By allowing ETRs to be tracked through their lifetime using a conformant identity, we make the lives for all market participants easier post-trade. Our ETR identity number will work seamlessly in both legacy and in-house trading systems for tracking your holdings past and present. We allow a wide variety of order types with the Limit Order and Market Order being the most common. Any order can further be given execution instructions, such as AON, IOC or FOK
Security and fraud prevention are paramount for AREX. We go great lengths to ensure that the parties we collaborate with are properly identified and that systemic fraud is mitigated. Apart from automated market and participant surveillance our dedicated back-office teams monitor market behaviour and suspicious trades are flagged for further examination. If we're in doubt, the trades are rolled back and an internal investigation is launched. We adhere to rigorous KYC and AML processes that aim to ensure the safety of all our market participants.
AREX admits into its trading venue ETRs that are categorized based on credit ratings obtained from Dun & Bradstreet. Below you can find more information about the various credit ratings and historical volumes of the overall exchange volume traded in a particular grade.
The highest credit rating AAA is awarded to the ETRs that have a probability of migrating to default ≤ 0.38% p.a.
AA implies strong solvency and is awarded to the ETRs that have a probability of migrating to default ≤ 0.86% p.a.
A implies fair solvency and is awarded to the ETRs that have a probability of migrating to default ≤ 1.21% p.a.
B implies less stable solvency and is awarded to the ETRs that have a probability of migrating to default ≤ 18.04% p.a.
C implies low solvency and is awarded to the ETRs that have a probability of migrating to default ≤ 42.24% p.a.
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AREX European Market Limited
Company reg.no: 545426
The Black Church, Saint Mary's Place North, Dublin 7, Republic of Ireland