DTCC and Euroclear launch cross-border collateral solution
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DTCC and Euroclear launch cross-border collateral solution 15 March 2017 Brussels Reporter: Drew Nicol
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DTCC-Euroclear GlobalCollateral is launching a collateral mobility solution for US and European securities.
The Global Collateral Inventory Management Service (IMS) promises to be a transformative solution enabling users to seamlessly mobilise securities as collateral between the two major markets.
In a joint statement on the launch, the Depository Trust & Clearing Corporation (DTCC) and Euroclear explained that the new product is their response to challenges of consolidating collateral pools and accessing a broader range of counterparties.
鈥淲ith IMS, financial institutions can now optimise collateral across two of the largest global market infrastructures servicing a combined $78 trillion in assets,鈥� the statement continued.
Participants can use DTCC eligible securities in the US, including equities, corporate bonds and asset-backed securities, for collateral purposes within Euroclear.
Michael Shipton, chief executive of Global Collateral IMS, said: 鈥淭his is a major step for Global Collateral. IMS delivers one of the joint venture鈥檚 key objectives鈥搕o address what market practitioners have long recognised as a critical need to be able to directly mobilise and use collateral across borders and to move dollar assets into Europe.鈥�
鈥淲ith IMS, firms have greater control and flexibility in the way they utilise their assets, while benefiting from improved efficiency.鈥�
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