CME Clearing Europe gets on Euroclear’s collateral highway
10 December 2012 London
Image: Shutterstock
Euroclear Bank and CME Clearing Europe have signed an agreement to help mutual clients fulfil their collateral obligations to meet initial margin requirements at CME Clearing Europe.
Euroclear Bank will source and manage securities collateral for this purpose on behalf of clients from its global ‘Collateral Highway’.
Andrew Lamb, CEO of CME Clearing Europe, said: “Triparty collateral management services bring additional flexibility to the markets we serve and offer greater certainty in a default management scenario. By working closely with our members, and with a range of proven infrastructure service providers like Euroclear Bank, we are strengthening our offering to market participants.”
Saheed Awan, global head of collateral management services at Euroclear Bank, added that central counterparty clearing institutions such as CME Clearing Europe play a vital role in mitigating credit risk, and have expanded their roles further with new regulatory requirements for OTC derivatives transactions.
“Indeed, we are very committed to these key infrastructure institutions. We have made our Collateral Highway available to them so that their clearing members, who are also our clients, are able to deliver collateral for CCP margin calls with ease and efficiency through our triparty collateral management service.”
Collateral Highway clients include LCH.Clearnet and ICE Clear Europe.
Euroclear Bank will source and manage securities collateral for this purpose on behalf of clients from its global ‘Collateral Highway’.
Andrew Lamb, CEO of CME Clearing Europe, said: “Triparty collateral management services bring additional flexibility to the markets we serve and offer greater certainty in a default management scenario. By working closely with our members, and with a range of proven infrastructure service providers like Euroclear Bank, we are strengthening our offering to market participants.”
Saheed Awan, global head of collateral management services at Euroclear Bank, added that central counterparty clearing institutions such as CME Clearing Europe play a vital role in mitigating credit risk, and have expanded their roles further with new regulatory requirements for OTC derivatives transactions.
“Indeed, we are very committed to these key infrastructure institutions. We have made our Collateral Highway available to them so that their clearing members, who are also our clients, are able to deliver collateral for CCP margin calls with ease and efficiency through our triparty collateral management service.”
Collateral Highway clients include LCH.Clearnet and ICE Clear Europe.
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