Eurex and Clearstream forge collateral link

Source: Eurex

Eurex Clearing, Europe's leading clearing house, has extended its collateral services by providing direct connectivity into Clearstream's tri-party collateral management service, known as the Global Liquidity Hub.

Through this link to the triparty collateral management engine of the International Central Securities Depository (ICSD) Clearstream Banking Luxembourg, Eurex Clearing members are able to deposit and use securities collateral to cover their respective risk exposure within a highly-automated and efficient collateral environment. This new service also supports clearing members in pooling their collateral portfolio within the Global Liquidity Hub efficiently across different counterparts and services.

"Eurex Clearing customers will now benefit from a streamlined tri-party collateral management process through our Global Liquidity Hub," said Stefan Lepp, member of the Executive Board of Clearstream. "The execution of our strategy to access collateral locations globally, leveraging our growing number of strategic partnership arrangements and, on the other side, linking to globally fragmented exposure locations such as CCPs, further accelerates with the addition of Eurex Clearing."

"Our focus is to provide efficient clearing services to our customers to comply with new regulatory requirements. The link into Clearstream's tri-party solution is a further milestone on our strategic roadmap. Our members will benefit from automatic allocation, optimization and substitution mechanisms to fulfil the CCP's margin and clearing fund requirements via one of the best interlinked collateral pools globally," said Thomas Book, CEO of Eurex Clearing.

Eurex Clearing offers a very broad range of eligible securities collateral globally with over 25,000 ISINs. Clearing members can choose to open pledged securities accounts either at the Central Securities Depository (CSD) Clearstream Banking Frankfurt, SIX Securities Services or Clearstream Banking Luxembourg.

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