Northern Trust To Use GlobalCollateral's Margin Settlement Service
It joins State Street in a pilot program to help increase efficiency and transparency.
Northern Trust will be implementing the margin settlement system developed by GlobalCollateral, a joint venture between the Depository Trust & Clearing Corporation (DTCC) and Euroclear.
The firm joins State Street, which announced its participation in early July, in a pilot for GlobalCollateral's Margin Settlement Messaging Service.
The service aims to create efficiencies by improving risk management processes and adding transparency, said Pete Cherecwich, Northern Trust's head of corporate and institutional services for the Americas, in a statement.
"We believe that one of the keys to excellent client service is to take advantage of new and innovative technologies, especially those that not only create operational efficiencies and improved risk management, but can also enable us to provide increased transparency to our clients," Cherecwich said.
With the messaging service, Northern Trust hopes to streamline its margin call process and automate its collateral settlement tracking as volumes of collateral start to increase.
State Street, Northern Trust and other firms implementing GlobalCollateral's margin settlement system expect that collateral volumes will increase so it is important to have a process that will handle the amount of work that has to be done quickly. The service is ready for client onboarding, GlobalCollateral said, and is expected to go live in the first half of 2017.
The service takes the place of a largely manual process that often requires a constant back and forth between all parties involved. GlobalCollateral's messaging service, running on the back of its Margin Transit Utility (MTU), automates the full operation from margin call to settlement.
Northern Trust could offer the Margin Transit Utility service to clients if there is enough demand for it. Implementation will depend on customer feedback.
After the pilot, Northern Trust and other institutions involved in the program will be able to use the MTU service to track collateral movement with settlement instructions to confirm success or failure.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Symphony boosts Cloud9 voice offerings with AI
The messaging and collaboration platform builds on Cloud9’s capabilities as it embraces the AI wave in what CEO Brad Levy calls “incremental” steps.
Can exchanges leverage new tech to claw back ETF share from RFQ platforms?
Systematic trading strategies and proliferating data are bringing efficiency to an otherwise-fragmented European ETF market.
Nasdaq reshuffles tech divisions post-Adenza
Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
Liquidnet sees electronic future for gray bond trading
TP Icap’s gray market bond trading unit has more than doubled transactions in the first quarter of 2024.
This Week: HKEx's new derivatives platform; GoldenSource; Quonian-SimCorp, and more
A summary of some of the latest financial technology news.
Chris Edmonds takes the reins at ICE Fixed Income and Data Services
Edmonds is now leading ICE’s fixed income and data business as the rush to provide better data and analytics in fixed income builds.
Systematic tools gain favor in fixed income
Automation is enabling systematic strategies in fixed income that were previously reserved for equities trading. The tech gap between the two may be closing, but differences remain.
Waters Wrap: Examining the changing EMS landscape
After LSEG’s decision to sunset Redi, Anthony examines what might lie ahead for the EMS space.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs