Euroclear Bank and LCH.Clearnet Ltd jointly announce today a new opportunity for LCH.Clearnet Ltd members to pledge securities through Euroclear Bank's triparty collateral management service to cover their margin obligations with LCH.Clearnet Ltd.
The new service is effective today.
LCH.Clearnet Ltd will continue to manage margin requirements for its members, with Euroclear Bank serving as a neutral agent to optimise the use of collateral for mutual clients. The Euroclear Bank service provides exposure matching, collateral allocation and mark-to-market valuations, margin calls and securities substitutions. The service covers transactions for which LCH.Clearnet Ltd acts as central counterparty in equity and commodity derivatives, fixed income and swaps.
Olivier Grimonpont, Director and Head of Collateral Services and Securities Lending and Borrowing at Euroclear Bank, commented: "As we serve many of the same clients, Euroclear Bank is a natural partner for LCH.Clearnet Ltd and its members, which continuously seek new cost-efficient ways of managing margin requirements. This new service represents another possibility for our clients to consolidate their collateral management across more business streams - margin management, securities lending, repo and derivatives."
Colin Woodley, Head of Operations at LCH.Clearnet Ltd, said: "We are very pleased to introduce this valuable extension to our collateral management service, which will result in cost and operational process savings for our members across the full range of markets served by LCH.Clearnet Ltd."