Euroclear announced upcoming improvements to its collateral contract and collateral schedule management services. Building on the Collateral Highway, the upgrade will focus on onboarding process, simplifying legal agreements and the management of collateral schedules.
Changes include:
- Easing admission and onboarding;
- Streamlining legal agreements; and
- Accelerating the setup and amendment of triparty collateral schedules
Triparty collateral schedule management enhancements include:
- a single digital interface for drafting, sharing and signing triparty collateral schedules
- enhanced validation checks and a new dashboard giving real-time monitoring, control and transparency
- bulk signing capabilities to save time and reduce costs
The improvements to triparty collateral schedule workflows will also replace the use of signed, fixed templates, known as ‘Fast-Track Annexes’, by a more flexible template approach. Under the new approach, a library of templates will be available for deployment and signatures will only be required once, when the collateral schedule is linked to the actual account for implementation, speeding up the process.
Euroclear is also introducing an email-based signature process to further improve speed and efficiency. With more efficient and faster processes in place for all collateral schedules, the current ‘Fast-Track’ service will be discontinued.
“There are times when you need to swiftly implement collateral exclusion requests, especially in response to sanctions, internal risk policy adjustment, market events or similar circumstances. Our new same-day bilateral exclusion solution will provide that functionality, making a significant improvement to current workflows,
“Longer-term, our objective is to deliver a touchless end-to-end digital solution for collateral contract management by harnessing new technology and through innovation. Our future solution will include state-of-the-art collaborative platforms and will use new techniques like Natural Language Processing (NLP) to ease and automate the translation of your collateral requirements,” Euroclear wrote.