Euroclear announced it’s connected to the European Central Bank’s Eurosystem Collateral Management System (ECMS), which replaces 20 separate national central bank (NCB) access points with a single, unified platform. The system enables market participants to manage their collateral on a pan-European basis which simplifies operations and boosts efficiency for both bilateral and triparty collateral movements.
Euroclear’s International Central Securities Depository (ICSD) Euroclear Bank, Euroclear France, Euroclear Nederland and Euroclear Finland, supported the launch by enabling clients to mobilize marketable assets worth over €550 billion to their individual central banks. The connection to ECMS, combined with integration into Target2-Securities, provides clients with access to both central bank money (CeBM) and commercial bank money (CoBM).
For Euroclear Bank, this marks an initial step toward ultimately offering CeBM settlement.
In addition Euroclear went live with its new Central Bank Access Service — part of the Collateral Highway — which enables clients to outsource the full end-to-end management of bilateral settlement with their central banks. The service delivers straight-through processing and enhanced automation for the mobilization and demobilization of collateral, driving greater operational efficiency and integrating with clients’ settlement activity.
Isabelle Delorme, head of Product Strategy and Innovation at Euroclear, said in a statement: “This connection strengthens Euroclear’s central position in asset custody and liquidity management, supported by our Collateral Highway, the world’s first neutral and global open architecture for institutions looking to optimize their collateral strategies. Our strength lies in enabling clients to centralize their euro liquidity in a single location, facilitating efficient and secure collateral mobilization across multiple asset classes.”