15 March 2017
Brussels
Reporter: Drew Nicol

DTCC and Euroclear launch cross-border collateral solution


DTCC-Euroclear GlobalCollateral is launching a collateral mobility solution for US and European securities.

The Global Collateral Inventory Management Service (IMS) promises to be a transformative solution enabling users to seamlessly mobilise securities as collateral between the two major markets.

In a joint statement on the launch, the Depository Trust & Clearing Corporation (DTCC) and Euroclear explained that the new product is their response to challenges of consolidating collateral pools and accessing a broader range of counterparties.

“With IMS, financial institutions can now optimise collateral across two of the largest global market infrastructures servicing a combined $78 trillion in assets,” the statement continued.

Participants can use DTCC eligible securities in the US, including equities, corporate bonds and asset-backed securities, for collateral purposes within Euroclear.

Michael Shipton, chief executive of Global Collateral IMS, said: “This is a major step for Global Collateral. IMS delivers one of the joint venture’s key objectives–to address what market practitioners have long recognised as a critical need to be able to directly mobilise and use collateral across borders and to move dollar assets into Europe.”

“With IMS, firms have greater control and flexibility in the way they utilise their assets, while benefiting from improved efficiency.”

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