BBH magnifies collateral programme
09 April 2014 New York
Image: Shutterstock
Brown Brothers Harriman has expanded its collateral management capabilities through support of the CME Clearing IEF4 programme.
IEF4 helps futures commission merchant clearing members (FCMs) and their clients improve the efficiency and optimisation of margin collateral usage for listed derivatives and cleared OTC swap contracts.
“BBH has been supporting collateral requirements of the derivatives industry since 1970, but disruption to the derivatives market following the 2008 financial crisis has increased demand for these services,” said a release from the firm.
Addressing the margin and operational efficiency concerns of derivatives users through a variety of services across the collateral lifecycle is now part of BBH’s core service offering to its asset manager, insurance, broker-dealer, and clearinghouse clients.
IEF4 provides FCMs and other industry participants the choice to deposit corporate bonds into a pledged tri-party custody account at BBH, creating an opportunity for more efficient OTC clearing and margin collateral usage, added the firm.
Stephen Bruel, head of derivatives product management, said:“BBH is focused on bringing flexibility, efficiency, and integration to all touch points in the collateral lifecycle. CME’s IEF4 programme is an important part of this strategy as industry attention moves away from preparing for compliance with mandatory clearing rules, towards improving the efficiency of collateral solutions. Regardless of where in the collateral lifecycle an entity sits, this should be what they are thinking about.”
“Collateral management is an important service that we offer to all clients to help them capture efficiencies and put eligible CCP collateral to use," said CME Clearing president, Kim Taylor. "We appreciate working with partners like BBH to extend these services to benefit the broader industry."
BBH settlement banking clients are also promised enhanced functionality, efficiency, transparency, and future process improvements as a result of the integration between BBH’s settlement banking platform, ComSet Plus, and the CME Clearing enhanced collateral management programme.
IEF4 helps futures commission merchant clearing members (FCMs) and their clients improve the efficiency and optimisation of margin collateral usage for listed derivatives and cleared OTC swap contracts.
“BBH has been supporting collateral requirements of the derivatives industry since 1970, but disruption to the derivatives market following the 2008 financial crisis has increased demand for these services,” said a release from the firm.
Addressing the margin and operational efficiency concerns of derivatives users through a variety of services across the collateral lifecycle is now part of BBH’s core service offering to its asset manager, insurance, broker-dealer, and clearinghouse clients.
IEF4 provides FCMs and other industry participants the choice to deposit corporate bonds into a pledged tri-party custody account at BBH, creating an opportunity for more efficient OTC clearing and margin collateral usage, added the firm.
Stephen Bruel, head of derivatives product management, said:“BBH is focused on bringing flexibility, efficiency, and integration to all touch points in the collateral lifecycle. CME’s IEF4 programme is an important part of this strategy as industry attention moves away from preparing for compliance with mandatory clearing rules, towards improving the efficiency of collateral solutions. Regardless of where in the collateral lifecycle an entity sits, this should be what they are thinking about.”
“Collateral management is an important service that we offer to all clients to help them capture efficiencies and put eligible CCP collateral to use," said CME Clearing president, Kim Taylor. "We appreciate working with partners like BBH to extend these services to benefit the broader industry."
BBH settlement banking clients are also promised enhanced functionality, efficiency, transparency, and future process improvements as a result of the integration between BBH’s settlement banking platform, ComSet Plus, and the CME Clearing enhanced collateral management programme.
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