CME Clearing Europe has selected the London Stock Exchange Group’s (LSEG) new central securities depository (CSD) as an additional securities collateral location for its members.
LSEG launched globeSettle this summer for CCPs to benefit from a straight through collateral and custody serving with the intention of creating a new pool of collateral liquidity in Europe.
LCH.Clearnet and Italian clearing house CC&G have already signed up to the service with CME Europe representing the third CCP to opt for globeSettle.
“CME Clearing Europe are delighted to work with LSEG on the development of globeSettle as it increases the choice of settlement venue for each of our clearing account segregation models including the recently launched fully segregated account structure,” said Lee Betsill, CEO, CME Clearing Europe.
The service gives clients access to J.P. Morgan’s collateral management services, delivering global collateral optimisation across a variety of structures, instruments and models.
Under EMIR, CCPs are required to hold collateral securities posted as margin at a securities settlement system.
We are working in order to expand our range of services to enable us to assist a broad range of customers meet the new requirements arising from on-going financial regulatory change,” said Andrea Tranquillini, managing director business development, globeSettle.