Clearstream and Standard Chartered connect for collateral
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Clearstream and Standard Chartered connect for collateral 22 April 2013Luxembourg and SIngapore Reporter: Georgina Lavers
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Clearstream and Standard Chartered Bank have agreed to collaborate on the development of a customised collateral management solution for their mutual clients.
The two firms signed a letter of intent that will enable both of their customers to benefit from the Liquidity Hub Connect collateral management service.
This will allow Standard Chartered customers to be able to consolidate their collateral holdings through Clearstream’s Global Liquidity Hub and cover their global exposures from a single collateral pool. The customers will be able to leave their assets in custody at Standard Chartered, “while avoiding any inefficient collateral fragmentation”, said the bank.
George Nast, global product head of transaction banking at Standard Chartered, said: “I am pleased that the joint clients of Standard Chartered and Clearstream will be able to cover their global exposures from a single collateral pool."
"Not only will clients across our footprint markets of Asia, Africa and the Middle East be able to effectively collateralise obligations on a real time basis, they can overcome an industry challenge of collateral fragmentation as well.”
Stefan Lepp, a member of the executive board and head of global securities financing at Clearstream, said: “[Our] working philosophy of creating cooperation agreements with strategic partners is having a big impact in extending reach and scope for our mutual customers and their clients."
"This will be the third customised Liquidity Hub Connect service to be developed and we are pleased to say that it delivers the most efficient solution on the market as it only mobilises collateral based on actual demand.”
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