Eurex Clearing partners with HQLAX on digital collateral mobilisation
23 January 2025 Europe, US
Image: wiparat/stock.adobe.com
Eurex Clearing has announced the launch of collateral mobilisation supported by distributed ledger technology (DLT) in Q2 2025.
The move aims to “set an example” for enabling digital mobilisation of collateral with the benefits of a secure CCP framework.
The flexibility, speed and efficiency of collateral transfers will be enhanced by mobilising collateral with the support of the HQLAX digital ledger, says Eurex Clearing.
Through digital ledger, Eurex clients can mobilise margin collateral via custodians and central securities depositories (CSDs). Such collateral is being posted to Eurex Clearing as margin collateral at Clearstream Banking.
According to the firm, the goal is to ensure that securities collateral becomes easily accessible, independent of its physical location, and can be moved quickly and without incurring substantial costs.
As a result, this should improve the immediate availability to meet the margin requirements set by CCPs. By achieving this, the process of fulfilling CCP margin requirements becomes even more efficient, the firm adds.
This initiative, which will see J.P. Morgan participate as the pilot clearing member, is a cornerstone of Eurex Clearing's collateral offering and digital services ambitions.
Helen Gordon, global head of Derivatives Clearing at J.P. Morgan, says: “J.P. Morgan early on identified the benefits of using traditional assets in digital form to move cleared derivatives collateral and is pleased to see this regulatory milestone achieved.
“We look forward to the next phase of implementation and realising the risk and optimisation benefits associated with improved collateral mobility for us and our clients.”
Matthias Graulich, member of the executive board, Eurex Clearing, concludes: “With this offering Eurex Clearing once again pioneers and upholds its status as the innovator in the CCP space. Eurex Clearing continues to invest in such advanced services.”
The move aims to “set an example” for enabling digital mobilisation of collateral with the benefits of a secure CCP framework.
The flexibility, speed and efficiency of collateral transfers will be enhanced by mobilising collateral with the support of the HQLAX digital ledger, says Eurex Clearing.
Through digital ledger, Eurex clients can mobilise margin collateral via custodians and central securities depositories (CSDs). Such collateral is being posted to Eurex Clearing as margin collateral at Clearstream Banking.
According to the firm, the goal is to ensure that securities collateral becomes easily accessible, independent of its physical location, and can be moved quickly and without incurring substantial costs.
As a result, this should improve the immediate availability to meet the margin requirements set by CCPs. By achieving this, the process of fulfilling CCP margin requirements becomes even more efficient, the firm adds.
This initiative, which will see J.P. Morgan participate as the pilot clearing member, is a cornerstone of Eurex Clearing's collateral offering and digital services ambitions.
Helen Gordon, global head of Derivatives Clearing at J.P. Morgan, says: “J.P. Morgan early on identified the benefits of using traditional assets in digital form to move cleared derivatives collateral and is pleased to see this regulatory milestone achieved.
“We look forward to the next phase of implementation and realising the risk and optimisation benefits associated with improved collateral mobility for us and our clients.”
Matthias Graulich, member of the executive board, Eurex Clearing, concludes: “With this offering Eurex Clearing once again pioneers and upholds its status as the innovator in the CCP space. Eurex Clearing continues to invest in such advanced services.”
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