Clearstream Introduces Versatile OTC Collateral Service, Enhancing Liquidity Capabilities

Clearstream, a solutions and services provider across several asset-classes, has launched OTC Collateral, a new bilateral management service for OTC

clearClearstream, a solutions and services provider across a multitude of asset classes, has launched OTC Collateral, a new bilateral management service for over-the-counter (OTC) processing capabilities for its Global Liquidity Hub, according to a Clearstream company statement.

Clearstream is also part of the Deutsche Bank Börse Group, a partnership forged since 2002, with the company providing clients with a vast array of services and solutions, specifically in liquidity management and clearing. Clearstream has been active across the derivatives trading and FX industry, having last year worked with 360T. Its newest initiative focuses on bilateral collateral management activity and overall connectivity between networks, including the Global Liquidity Hub and Credit Support Annex (CSA) – this will provide clients with services including clearing, settlement, transaction reporting and portfolio reconciliation.

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OTC Collateral Consolidates Clients’ Exposures

Stefan Lepp
Head of Global Securities Financing

According to Stefan Lepp, Head of Global Securities Financing and member of the Executive Board of Clearstream, in a recent statement on the launch of the new service, “Our bilateral collateral management service OTC Collateral is an important expansion of the Global Liquidity Hub and will strengthen our offering to banks and the buy-side in line with the growing demand in the OTC derivative space. Its seamless connection to the triparty world via a range of reuse possibilities will enable customers to meet all their exposures from a single collateral pool, regardless of whether they are bilateral, triparty or to a CCP.”

Indeed, the OTC Collateral will help customers and clients compensate and ultimately curb collateral disaggregation and optimize the allocation giving them the capacity to cover over-the-counter, triparty and central counterparty (CCP) exposures from a single consolidative pool. Clearstream’s new bilateral OTC Collateral service is seen as a complement to its present offering of triparty solutions. The fundamental difference lies in its extensive operations’ capabilities, not strictly relegated to OTC derivative exposures. The new management service also syncs with the Global Liquidity Hub service, meaning clients are granted the full extend of Clearstream’s versatile asset suite.

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