Regulators are pushing for an increasing number of trades to be cleared by CCPs. While this has the benefit of reducing counterparty risk, it also creates additional complexity, as each CCP has different clearing requirements. As a result, customers have to deal with a multitude of operational frameworks and collateral profiles.
As an experienced triparty collateral agent, Clearstream helps customers to make the most of their assets through an efficient use of collateral, thereby making expensive cash margins redundant. Clearstream customers who are also clearing members can use the Global Liquidity Hub’s full suite of automatic allocation, optimisation and substitution services for their exposures with the following partner CCPs:
- BME Clear
- CME Clearing Europe
- Dubai Clearing Corporation
- Eurex Clearing
- EuroCCP (interoperability)
- ICE Clear Europe
- India International Clearing Corporation (IFSC) Limited
- Indian Clearing Corporation Ltd
- LCH.Clearnet Ltd
- Oslo Clearing ASA
This margining service is part of Clearstream’s wider efforts to give customers the best possible access to collateral locations around the world: both through strategic partnerships and by linking to globally fragmented exposure locations such as CCPs. Customers can use the Global Liquidity Hub to cover multiple exposure types: bilateral, central bank and CCP margining.