BlackRock’s collateral changes
13 December 2011 London
Image: Shutterstock
BlackRock has made its family of money market funds available to Euroclear Bank’s clients, enabling them to re-invest cash received as collateral in triparty transactions managed by Euroclear Bank. Re-investing cash collateral is a frequent challenge in
this type of transaction.
For the first time, a new Euroclear Bank service feature gives triparty cash collateral takers the option to re-invest cash into an array of money market funds seamlessly through FundSettle. FundSettle is Euroclear Bank’s dedicated platform for fund transaction processing. BlackRock is one of the first providers of money market funds for this purpose. The cash re-investment service is available in euros, British pounds and US dollars.
Jo Van de Velde, managing director and head of product management at
Euroclear, said: “Clients have come to rely on Euroclear as an agile leader
of innovation and choice, a pacesetter to anticipate and support evolving
market trends. Our close co-operation with BlackRock, as one of the early
adopters to make their money market funds available, will meet the
increasing demand from our clients to avoid re-deposit risks. Having
multiple options to re-invest cash collateral is a key requirement from
market participants in the secured markets. By offering a seamless cash
re-investment service in money market funds to our clients, without any
complexity, we add another dimension to delivering our post-trade made easy
mission.”
Mark Stockley, managing director and head of International cash sales at
BlackRock, added: “BlackRock is pleased to be an early partner in Euroclear
Bank’s innovative offering. As an expert in liquidity management,
BlackRock’s Cash Management Group is supportive of industry initiatives
which provide solutions to our clients’ cash management needs.”
this type of transaction.
For the first time, a new Euroclear Bank service feature gives triparty cash collateral takers the option to re-invest cash into an array of money market funds seamlessly through FundSettle. FundSettle is Euroclear Bank’s dedicated platform for fund transaction processing. BlackRock is one of the first providers of money market funds for this purpose. The cash re-investment service is available in euros, British pounds and US dollars.
Jo Van de Velde, managing director and head of product management at
Euroclear, said: “Clients have come to rely on Euroclear as an agile leader
of innovation and choice, a pacesetter to anticipate and support evolving
market trends. Our close co-operation with BlackRock, as one of the early
adopters to make their money market funds available, will meet the
increasing demand from our clients to avoid re-deposit risks. Having
multiple options to re-invest cash collateral is a key requirement from
market participants in the secured markets. By offering a seamless cash
re-investment service in money market funds to our clients, without any
complexity, we add another dimension to delivering our post-trade made easy
mission.”
Mark Stockley, managing director and head of International cash sales at
BlackRock, added: “BlackRock is pleased to be an early partner in Euroclear
Bank’s innovative offering. As an expert in liquidity management,
BlackRock’s Cash Management Group is supportive of industry initiatives
which provide solutions to our clients’ cash management needs.”
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