International central securities depository Clearstream has announced the introduction of OTC Collateral, a bilateral collateral management service, to its risk and liquidity management platform Global Liquidity Hub.
OTC Collateral will augment Clearstream's existing capabilities for triparty collateral management, and supports all areas of bilateral activity. Clients will now be able to manage their exposures from a single collateral pool, whereas before, a number of different requirements meant covering collateral requirements from multiple streams, such as cleared and uncleared derivatives trades. The service is linked to the TradeCycle product suite, offered by both Clearstream and Commerzbank.
"Our bilateral collateral management service OTC Collateral is an important expansion of the Global Liquidity Hub and will strengthen our offering to banks and the buy side in line with the growing demand in the over-the-counter derivative space," says Stefan Lepp, head of global securities financing, and a member of the executive board at Clearstream. "Its seamless connection to the triparty world via a range of reuse possibilities will enable customers to meet all their exposures from a single collateral pool, regardless of whether they are bilateral, triparty or to a central counterparty."
Clearstream is Deutsche Börse Group company.
Jesse Lund talks about real uses for DLT in the capital markets, lessons learned while rolling out IBM's blockchain platform, and what’s ahead for 2018, and into 2019.Subscribe to Weekly Wrap emails