Eurex Clearing Links to Clearstream for Collateral Management

Eurex Clearing is providing direct connectivity to Clearstream’s collateral management service.

The link allows Eurex Clearing members to deposit and use securities collateral to cover their respective risk exposure in an automated environment. It is being made available through the triparty collateral management engine of the ICSD Clearstream Banking Luxembourg and is expected to automate the management of margin collateral for Eurex Clearing.

This new service also supports clearing members in pooling their collateral portfolio within the Global Liquidity Hub efficiently across different counterparts and services.

“Eurex Clearing customers will now benefit from a streamlined tri-party collateral management process through our Global Liquidity Hub,” says Stefan Lepp, member of the Executive Board of Clearstream. “The execution of our strategy to access collateral locations globally, leveraging our growing number of strategic partnership arrangements and, on the other side, linking to globally fragmented exposure locations such as CCPs, further accelerates with the addition of Eurex Clearing.”

“Our focus is to provide efficient clearing services to our customers to comply with new regulatory requirements. The link into Clearstream’s tri-party solution is a further milestone on our strategic roadmap. Our members will benefit from automatic allocation, optimization and substitution mechanisms to fulfil the CCP’s margin and clearing fund requirements via one of the best interlinked collateral pools globally,” says Thomas Book, CEO of Eurex Clearing.