Clearstream, StanChart Debut Singaporean Collateral Partnership

From November 17, the service will allow client assets needed for collateral to be automatically moved to a Clearstream account held with Standard Chartered. They can then be used to cover global exposures with any Clearstream counterparty. The system is automated, identifying the cheapest possible collateral and only allocating up to the required amount.

"I am pleased that mutual customers of Standard Chartered and Clearstream are now able to optimise their inventory held in custody with us in Singapore, by seamlessly and efficiently allocating it to cover their global exposures from a single collateral pool," says George Nast, global product head, transaction banking at Standard Chartered. "This greatly streamlines collateral management for Singaporean assets and enables our customers to maximise the use of these assets, thereby overcoming one of the most pressing challenges faced by the industry today ─ collateral fragmentation."

The announcement follows a similar move yesterday between Standard Bank and Euroclear.