Liquidity Hub GO (Global Outsourcing)

A quick and cost-effective solution for infrastructures to benefit quickly from state-of-the-art collateral management system

Regulatory pressure, particularly in Europe and the US, is having an enormous impact on the way financial institutions secure their exposures: in fact, the whole market needs more collateral at a time when this resource is already in short supply.

Hand-in-hand with the need for more collateral is the requirement for sophisticated collateral management that will ensure the right collateral is in the right location at the right time.

Developing a proprietary collateral management system capable of coping with the complex demands of modern financial markets is a difficult, costly and time-consuming project.

A unique service

This is why Clearstream developed its pioneering Liquidity Hub GO service which allows institutions - typically central banks, CSDs or exchanges – to connect directly to Clearstream’s state-of-the-art collateral management engine. The service can be white-labelled and requires no contract changes between the service user and its customers.

Clearstream effectively handles all the allocation, optimisation and substitution but the assets do not leave the domestic market, a legal requirement in many jurisdictions. Clearstream is the only collateral management service provider offering this solution to the market.

Developing this service with Clearstream is quick and cost-effective and our partners and their customers are able to leverage our 20 years of experience in collateral management and benefit from the continuous innovations and developments that enhance the Global Liquidity Hub.

Clearstream has already rolled out this service with Brazilian CSD Cetip – see the case study below – and has signed a letter of intent with the Australian Securities Exchange. We expect to be announcing a number of new collaborations in the months and years to come.

Further information

For more information on Clearstream’s cooperation with Cetip and the Australian Securities Exchange, follow the links below or contact Gerd Hartung.