Euroclear to on-board Deutsche Börse entity as collateral receiver
10 May 2019 London
Image: Shutterstock
The Deutsche Börse Group owned Trusted Third Party (TTP) is in the process of becoming a client of Euroclear as a collateral taker on the triparty platform. This represents an important step for enabling Euroclear clients to mobilise collateral on the HQLAᵡ platform.
Speaking at the Securities Finance Technology Symposium, Guido Stroemer, CEO of HQLAᵡ, explained that a critical component of the HQLAᵡ – Deutsche Börse Group joint operating model is the TTP entity, which acts as an interface between the HQLAᵡ digital collateral registry and existing securities settlement infrastructures.
The immediate goal is for the TTP to become a collateral receiver at each of the major triparty agents in Europe.
Stroemer explained: “The HQLAᵡ value proposition is to enable improved collateral mobility across multiple siloed pools of collateral, so in order for HQLAᵡ to deliver on its value proposition, we naturally need the TTP to become on-boarded as a collateral receiver with each of these collateral pools.”
Speaking on the panel, Stroemer highlighted that it is important to create a scenario where banks can easily onboard onto a new platform. The banks that helped design the HQLAᵡ platform clearly outlined that a critically important pre-requisite for early market adoption is not only for the platform to deliver real value but also for the on-boarding process to be relatively easy.
He noted that the initial rollout of the platform is quite basic, and this is by design. The goal was to keep the minimal viable product (MVP) as basic as possible, while still delivering value.
He commented: “In terms of timelines, our simulation environment will be up and running for clients to use by the end of next month, and we expect to execute a series of live transactions later in the year.”
“We are making some real progress in this space, and in my view, game-changing progress in laying the foundation to fuel market-wide adoption of the HQLAᵡ operating model."
Stroemer added: “Euroclear should be commended for being such an open-minded and innovative platform, willing to support new initiatives supported by its clients.”
Speaking at the Securities Finance Technology Symposium, Guido Stroemer, CEO of HQLAᵡ, explained that a critical component of the HQLAᵡ – Deutsche Börse Group joint operating model is the TTP entity, which acts as an interface between the HQLAᵡ digital collateral registry and existing securities settlement infrastructures.
The immediate goal is for the TTP to become a collateral receiver at each of the major triparty agents in Europe.
Stroemer explained: “The HQLAᵡ value proposition is to enable improved collateral mobility across multiple siloed pools of collateral, so in order for HQLAᵡ to deliver on its value proposition, we naturally need the TTP to become on-boarded as a collateral receiver with each of these collateral pools.”
Speaking on the panel, Stroemer highlighted that it is important to create a scenario where banks can easily onboard onto a new platform. The banks that helped design the HQLAᵡ platform clearly outlined that a critically important pre-requisite for early market adoption is not only for the platform to deliver real value but also for the on-boarding process to be relatively easy.
He noted that the initial rollout of the platform is quite basic, and this is by design. The goal was to keep the minimal viable product (MVP) as basic as possible, while still delivering value.
He commented: “In terms of timelines, our simulation environment will be up and running for clients to use by the end of next month, and we expect to execute a series of live transactions later in the year.”
“We are making some real progress in this space, and in my view, game-changing progress in laying the foundation to fuel market-wide adoption of the HQLAᵡ operating model."
Stroemer added: “Euroclear should be commended for being such an open-minded and innovative platform, willing to support new initiatives supported by its clients.”
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