London Stock Exchange Group’s new central securities depository (CSD), globeSettle, has been selected by CME Clearing Europe as an additional securities collateral location for their members.
The agreement will allow clients and members of the central counterparty (CCP) to benefit from a straight through collateral and custody solution, provided by J.P. Morgan, thus creating a new pool of collateral liquidity in Europe. Under EMIR, CCPs are required to hold collateral securities posted as margin at a securities settlement system.
Andrea Tranquillini, Managing Director Business Development, globeSettle said: “We are delighted that CME Clearing Europe has selected globeSettle as a collateral location venue. The appointment is further evidence of LSEG’s open-access model, where CCPs, brokers, clearing members and collateral providers can meet margin requirements in an efficient settlement and custody environment. We are working in order to expand our range of services to enable us to assist a broad range of customers meet the new requirements arising from on-going financial regulatory change”.
Lee Betsill, CEO, CME Clearing Europe says, “CME Clearing Europe are delighted to work with LSEG on the development of globeSettle as it increases the choice of settlement venue for each of our clearing account segregation models including the recently launched Fully Segregated account structure.”
globeSettle has already received regulatory approval to start operations as a Professional of the Luxembourg Financial Sector and has applied for designation as a Securities Settlement System. globeSettle gives its clients access to J.P. Morgan’s collateral management services, delivering global collateral optimisation across a variety of structures, instruments and models.