Clearstream and HKMA to launch joint collateral services
17 October 2012 Hong Kong
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Clearstream and the Hong Kong Monetary Authority (HKMA) plan to provide cross-border collateral management and liquidity services in Hong Kong.
They will launch the services in Q1 2013.
Clearstream’s partnership with the HKMA will allow “international financial institutions (as a collateral giver) ... to use their extended pool of collaterals in Clearstream to conduct repo transactions with and obtain liquidity from members (as a collateral receiver) of the HKMA’s Central Money Markets Unit (CMU),” said a recent statement from Clearstream.
The services will also support Clearstream’s Global Liquidity Hub customers in enhancing the utilisation of their collateral on an optimised basis.
Peter Pang, deputy chief executive of the HKMA, said: “We welcome Clearstream in joining forces with the HKMA and other global triparty repo systems in providing the cross-border collateral management services at the global and domestic levels. The expanded coverage of the cross-border collateral management services will further promote the development of a cost effective and efficient repo market in Hong Kong and enhance financial stability through the wider use of collateral to reduce credit risk among financial institutions.”
Jeffrey Tessler, CEO of Clearstream, said: “We are pleased to partner with the HKMA and to be developing this additional access to liquidity in Hong Kong. The cooperation leverages our extensive experience in Asia, where we have been present and active for more than 20 years, and enables Hong Kong institutions to take advantage of our award-winning collateral management and triparty repo services, offered through our Global Liquidity Hub.”
They will launch the services in Q1 2013.
Clearstream’s partnership with the HKMA will allow “international financial institutions (as a collateral giver) ... to use their extended pool of collaterals in Clearstream to conduct repo transactions with and obtain liquidity from members (as a collateral receiver) of the HKMA’s Central Money Markets Unit (CMU),” said a recent statement from Clearstream.
The services will also support Clearstream’s Global Liquidity Hub customers in enhancing the utilisation of their collateral on an optimised basis.
Peter Pang, deputy chief executive of the HKMA, said: “We welcome Clearstream in joining forces with the HKMA and other global triparty repo systems in providing the cross-border collateral management services at the global and domestic levels. The expanded coverage of the cross-border collateral management services will further promote the development of a cost effective and efficient repo market in Hong Kong and enhance financial stability through the wider use of collateral to reduce credit risk among financial institutions.”
Jeffrey Tessler, CEO of Clearstream, said: “We are pleased to partner with the HKMA and to be developing this additional access to liquidity in Hong Kong. The cooperation leverages our extensive experience in Asia, where we have been present and active for more than 20 years, and enables Hong Kong institutions to take advantage of our award-winning collateral management and triparty repo services, offered through our Global Liquidity Hub.”
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