Brown Brothers Harriman & Co. (BBH) has launched a straight-through processing (STP) interface to CME Clearing’s Collateral Connect messaging protocol, enabling customers to optimise their collateral selection process.
Alongside BBH’s settlement banking service, the BBH Cleared Derivatives Collateral Management platform (BBH-CDCM) will now provide Futures Commission Merchants (FCMs) with improved collateral management across the FCM spectrum, central-clearing counterparties and institutional market participants.
"Now more than ever, our FCM clients have expressed a need for new solutions to help them navigate new regulations and changing market dynamics, all while being responsive to increased demand for high-quality collateral, reduced costs and improved risk management controls,” said Frank Perrone, head of BBH FCM and Derivatives Settlement Banking Group.
Sunil Cutinho, President of CME Clearing, said “We are pleased to work with BBH to provide greater collateral efficiencies to the marketplace.
“BBH-CDCM provides access to CME’s Collateral Connect API, which is available for all CME Clearing and CME Clearing Europe clearing firms and their custody banks, supports continued automation of collateral transaction processing, and makes it easier and faster for FCMs to substitute collateral for their clients.”