Eurex Clearing has extended its connectivity to Clearstream’s tri-party collateral management hub to provide a more streamlined service for customers.
Deutsche Börse, which owns both Eurex Clearing and Clearstream, said the move was a significant step in the integration of its services to provide increased collateral efficiency.
The link will enable Eurex Clearing users to link directly to the Global Liquidity Hub, enabling them to deposit and use collateral to cover risk exposure in a highly automated fashion.
Clearing members will be able to pool their collateral portfolio within the hub across different counterparties and services.
Stefan Lepp, member of the executive board of Clearstream, said: “The execution of our strategy to access collateral locations globally, leveraging our growing number of strategic partnership arrangements and, on the other side, linking to globally fragmented exposure locations such as central counterparties (CCPs), further accelerates with the addition of Eurex Clearing.”
The system’s automated services include allocation, collateral optomisation and substitution mechanisms to help clients fulfill the CCP’s margin and clearing requirements.