Clearstream and ICE Clear Europe are collaborating to create a tri-party margin collateral management service, linking the London-based central counterparty (CCP) to Clearstream’s Global Liquidity Hub.
Customers of the Clearstream international central securities depository (ICSD) will be able to use the Global Liquidity Hub to manage margin requirements at ICE Clear Europe, while ICE clearing members will have a link, through the hub, to a triparty collateral management solution.
ICE Clear Europe members can deposit securities and use them as collateral, managing their risk exposures in an automated and efficient collateral environment.
The new service supports a move to improve stability of capital markets through increased trades. It is designed to help prevent bottlenecks when sourcing the correct high-quality collateral to meet the CCP’s margin requirements.
Stefan Lepp, head of global securities financing and member of the executive board at Clearstream, said: "ICE Clear Europe customers will now benefit from streamlined triparty collateral management through our Global Liquidity Hub.”
He added: “This new partnership is part of our strategy of enabling customers to use the Global Liquidity Hub as a single source of liquidity to collateralise multiple global exposures in a streamlined and optimised manner. More importantly, users of the Global Liquidity Hub will be able to manage all cleared activities from a single location."
Paul Swann, president of ICE Clear Europe, said: "ICE Clear Europe is committed to providing enhanced clearing services to help members comply with new regulatory requirements. Clearstream's tri-party collateral solution provides ICE Clear Europe members with an additional and efficient way of meeting initial margin requirements via one of the best linked collateral pools globally."
