BBH launches industry first STP interface for CME
16 December 2015 New York
Image: Shutterstock
Brown Brothers Harriman (BBH) has unveiled the industry's first straight-through processing (STP) interface to CME Clearing’s collateral connect messaging protocol.
The BBH cleared derivatives collateral management platform (BBH-CDCM) enables participants to optimise the customer collateral selection process and efficiently process collateral transfers to and from CME Clearing.
This solution expands the established collateral management services for futures commission merchants (FCMs), asset managers, and other market participants, according to BBH.
"Now more than ever, our FCM clients have expressed a need for new solutions to help them navigate new regulations and changing market dynamics, all while being responsive to increased demand for high-quality collateral, reduced costs and improved risk management controls,” said Frank Perrone, head of the BBH FCM and derivatives settlement banking group.
“BBH-CDCM will help our FCM clients remain competitive with cost effective technology options that offer STP, aid in risk management, and accommodate evolving regulatory reporting practices."
Sunil Cutinho, president of CME Clearing, added: “We are pleased to work with BBH to provide greater collateral efficiencies to the marketplace.
“BBH-CDCM provides access to CME’s Collateral Connect API, which is available for all CME Clearing and CME Clearing Europe clearing firms and their custody banks, supports continued automation of collateral transaction processing, and makes it easier and faster for FCMs to substitute collateral for their clients.”
The BBH cleared derivatives collateral management platform (BBH-CDCM) enables participants to optimise the customer collateral selection process and efficiently process collateral transfers to and from CME Clearing.
This solution expands the established collateral management services for futures commission merchants (FCMs), asset managers, and other market participants, according to BBH.
"Now more than ever, our FCM clients have expressed a need for new solutions to help them navigate new regulations and changing market dynamics, all while being responsive to increased demand for high-quality collateral, reduced costs and improved risk management controls,” said Frank Perrone, head of the BBH FCM and derivatives settlement banking group.
“BBH-CDCM will help our FCM clients remain competitive with cost effective technology options that offer STP, aid in risk management, and accommodate evolving regulatory reporting practices."
Sunil Cutinho, president of CME Clearing, added: “We are pleased to work with BBH to provide greater collateral efficiencies to the marketplace.
“BBH-CDCM provides access to CME’s Collateral Connect API, which is available for all CME Clearing and CME Clearing Europe clearing firms and their custody banks, supports continued automation of collateral transaction processing, and makes it easier and faster for FCMs to substitute collateral for their clients.”
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