Euroclear enters a partnership with Transcend with the aim to introduce a new joint collateral optimization service. The service will bring together Euroclear’s collateral management infrastructure and data with Transcend’s optimization platform and is expected to launch in Q1 of 2025.
Transcend provides inventory management, collateral eligibility and optimization among its services, which achieve financial and operational performance by automating complex liquidity, funding and inventory decision making. Transcend’s optimization platform leverages data from dealers, triparty agents, securities depositories and other sources to allow for holistic optimization across collateral venues and straight through processing of allocations and movements.
Available through existing Euroclear connectivity, the new service will easily integrate critical data for smart decision making and settle optimized collateral allocations. By leveraging Transcend’s technology, clients will be able to configure optimization scenarios, include external collateral pools to determine the best collateral use at Euroclear and perform ‘what-if’ analyses on specific constraints.
Olivier Grimonpont, head of Product Management and Market Liquidity at Euroclear, said in a statement: “New regulatory requirements have made collateral optimization a priority for dealers. This new service brings to the market the combined expertise of Euroclear and Transcend. Euroclear’s long-standing collateral management experience and robust infrastructure combined with Transcend’s best-in-class optimization and booking technology offers an unparalleled solution to meet our clients’ needs for collateral optimization.”
“We are excited to partner with Euroclear in offering our industry leading optimization platform to the Euroclear’s leading collateral management platform to seamlessly optimize their collateral, liquidity and funding decisions. Transcend’s technology is already used by the world’s largest financial institutions and this joint service enables a quick way for Euroclear customers to seamlessly take advantage of our sophisticated platform and capabilities,” said Bimal Kadikar, Transcend’s founder and CEO, in a statement.