Clients of both the Brussels-based Euroclear Bank and Eurex Clearing will now be able to post collateral directly to Eurex Clearing, with the ability to further optimise the pool of collateral held in Euroclear’s International Central Securities Depository (ICSD).
“We are excited to have Eurex Clearing joining the group of CCPs using our services to support their critical margining activity.” said Olivier Grimonpont, managing director, head of product management, market liquidity, Euroclear. “As an open financial market infrastructure we continuously strive to benefit our ecosystem by creating efficiencies which contribute to a more stable, secure financial marketplace, providing the best in class service to clients.”
According to Euroclear, the service offering will increase operational efficiency for market users and streamline the collateral management process.
Matthias Graulich, chief strategy officer, member of the executive board of Eurex Clearing said: “We are pleased to offer Euroclear Bank as an additional securities collateral location for provision of margin and default fund contributions. With this service we jointly create added value for our clients by facilitating a smooth access to the CCP and by enabling efficiencies across the clearing community.”
Graulich further added: “Euroclear Bank strengths our offering for the buy-side clients and complements our existing services such as ISA Direct and ISA Direct Indemnified clearing models.”
The agreement builds on the existing partnership which sees Eurex Clearing already use Euroclear Bank as an eligible securities settlement location.