LCH.Clearnet adds SWIFT MX on both sides of the pond
18 September 2013 London and New York
Image: Shutterstock
Both the UK and US based subsidiaries of LCH.Clearnet will implement SWIFT MX standard messaging for securities and cash collateral instructions provided to the clearing house members.
The move eliminates the need for manual intervention, improving the efficiency of the collateral management process by allowing clearing members to provide instructions from their own systems.
Clearing members will be able to exchange automated, standardised information securely and reliably. In addition, members will benefit from increased transparency and straight-through processing within their middle and back offices.
Martin Ryan, global head of operations at LCH.Clearnet, said: “Regulatory change, the mandatory clearing of OTC derivatives and the evolution of different asset protection and segregation models will soon require more collateral to move efficiently, from end users through the clearing members to CCPs.”
“A cornerstone of LCH.Clearnet’s collateral services strategy is to leverage market infrastructure providers to provide efficient, scalable and standardised solutions throughout the complete end-to-end collateral processing chain.”
Arun Aggarwal, head of UK, Ireland and Nordics at SWIFT, added: “The current emphasis on central clearing has changed the scope of the requirement for collateral messaging and created an opportunity for SWIFT to extend its solution to CCPs. We look forward to working with LCH.Clearnet to improve the speed, transparency and efficiency of collateral management activities for its customers.”
The move eliminates the need for manual intervention, improving the efficiency of the collateral management process by allowing clearing members to provide instructions from their own systems.
Clearing members will be able to exchange automated, standardised information securely and reliably. In addition, members will benefit from increased transparency and straight-through processing within their middle and back offices.
Martin Ryan, global head of operations at LCH.Clearnet, said: “Regulatory change, the mandatory clearing of OTC derivatives and the evolution of different asset protection and segregation models will soon require more collateral to move efficiently, from end users through the clearing members to CCPs.”
“A cornerstone of LCH.Clearnet’s collateral services strategy is to leverage market infrastructure providers to provide efficient, scalable and standardised solutions throughout the complete end-to-end collateral processing chain.”
Arun Aggarwal, head of UK, Ireland and Nordics at SWIFT, added: “The current emphasis on central clearing has changed the scope of the requirement for collateral messaging and created an opportunity for SWIFT to extend its solution to CCPs. We look forward to working with LCH.Clearnet to improve the speed, transparency and efficiency of collateral management activities for its customers.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
