International central securities depository (ICSD) Euroclear has announced that its Collateral Highway network partnership with BNP Paribas Securities Services has been extended to four more countries.
Capital markets in Belgium, France, The Netherlands and Germany are now covered by the tri-party collateral management service on the network, operated jointly by the ICSD and the custodian bank. Mutual sell-side clients in six nations, including Italy and Spain, are now able to use the service, where equities and fixed-income collateral can be optimized between books for use in tri-party transactions that are cleared by Euroclear Bank. Mobilization is seamless, and securities can be returned to a domestic account at any time.
"The unique technology used allows for the automatic and friction-free mobilization of both fixed-income and equities collateral at a lower cost than other cross-border tri-party collateral providers," says Frederic Hannequart, chairman of Euroclear Bank. "Our joint customers can now take a holistic approach to collateral management and this service affords them the highest levels of cost and risk efficiencies when sourcing and allocating securities. Together with BNP Paribas, we are delivering a client-driven solution that hinges on open-source portfolio optimization."
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