Clearstream and Lombard Risk partner on collateral management services ahead of EMIR

Lombard Risk’s collateral management clients will gain access to Clearstream’s triparty collateral management services, bringing together more opportunities for real-time collateral mobilization in order to improve liquidity on a global basis. This will further improve collateral efficiency, enabling a straight-through collateral management process across all asset classes, promoting data accuracy and increasing visibility of the collateral management lifecycle on a global basis. The new triparty connection will furthermore allow joint customers of Clearstream and Lombard Risk to leverage their triparty collateral management activities in regards to repo, securities lending and borrowing and access to central bank money collateralisation at a Eurosystem level.

This cooperation comes ahead of the regulatory deadline for Initial Margin requirements Phase 3 under the European Market Infrastructure Regulation (EMIR) in September and other jurisdictions. The next phase of margin requirements will require counterparties to exchange two-way initial margin on a non-netted basis for uncleared derivatives exceeding €1.5 trillion. This puts additional pressure on tier 2- and 3-size firms to get their collateral management solutions in place. The necessary collateral must be segregated at a non-affiliated third-party custodian or triparty agent, such as Clearstream.

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