Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Mark Jennis, GlobalCollateral

23760

DTCC-Euroclear Global Collateral launches cross-border collateral mobility service

RELATED TOPICS​

DTCC-Euroclear Global Collateral has launched the Inventory Management Service (IMS), a solution that enables market participants to mobilise securities from the US to Europe for use as collateral amid rising demand for high-quality securities to back trades.

With IMS, financial institutions can now optimise collateral across two of the largest global market infrastructures servicing a combined USD78 trillion in assets.
 
The launch of IMS fulfils one of the joint venture’s key goals of delivering cross-border collateral mobility, and is part of GlobalCollateral’s ongoing commitment to establishing a key market utility that delivers increased visibility, mobility and efficiency to highly-fragmented and complex collateral management processes.
 
GlobalCollateral IMS enables a participant to use their Depository Trust Company (DTC) eligible securities in the US, including US equities, corporate bonds and asset backed securities, for collateral purposes within Euroclear. With IMS, dealers can consolidate assets across markets and asset classes, and deploy those assets to satisfy exposures globally. The new service satisfies market participants’ need to efficiently and cost effectively move dollar assets into Europe, as well as significantly advances the development of global collateral optimisation.
 
IMS was created to address the challenges of consolidating collateral pools and accessing a broader range of counterparties. The deployment of the service is a major step towards creating global collateral linkages and will help to alleviate the liquidity, regulatory and risk challenges that the industry has been facing.
 
Mark Jennis (pictured), executive chairman of GlobalCollateral, says: “The launch of IMS demonstrates what we, as an industry, can achieve when we collaborate with each other. As the demand for high-quality collateral continues to grow, IMS provides critical access to new collateral pools.”
                                                                  
Michael Shipton, chief executive of GlobalCollateral, says: “This is a major step for GlobalCollateral. IMS delivers one of the joint venture’s key objectives – to address what market practitioners have long recognized as a critical need to be able to directly mobilize and use collateral across borders and to move dollar assets into Europe. With IMS, firms have greater control and flexibility in the way they utilise their assets, while benefiting from improved efficiency.”

Latest News

DWS has announced the latest development in its strategic growth push in Alternative Credit with..
According to the latest ESG data from PwC Luxembourg finds that investment flows towards EU..
Solactive and private equity data provider CEPRES have established a new partnership for to introduce..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by