Clearstream has announced that it will provide a fully STP triparty collateral management system linked to the Eurosystem Collateral Management System (ECMS) when ECMS goes live in April 2024.
Using Vermeg’s Easy Collateral product, Clearstream indicates that the solution will provide its clients with an industry-leading digital monitoring tool, along with enhanced liquidity management and collateral optimisation facilities.
This will provide centralised monitoring of the ECB-eligible collateral pool for Eurozone banks and consolidation of up to 100 per cent of ECB-eligible securities at Clearstream’s CSDs and ICSD.
With the launch of ECMS, Clearstream indicates that it will be the only Eurozone CSD offering comprehensive triparty collateral services that are fully integrated into ECMS and for all the Eurozone national central banks.
A more detailed analysis of Clearstream’s ECMS-enabled collateral solution is published in SFT 319.
Marton Szigeti, Clearstream’s head of collateral, lending and liquidity solutions, says: “ECMS will standardise collateral management across the Eurozone, advancing liquidity and automation potential. As always, Clearstream’s core aim is to provide innovative best-in-class solutions that meet market needs.
“We are determined to support our global network of participants throughout the whole process to leverage Clearstream’s unique tri-party collateral management capabilities from day 1 of ECMS. Together with our innovative software partner Vermeg, we are happy to enable the market to directly reap the benefits of ECMS.”
Khaled Ben Abdeljelil, senior VP for product at Vermeg, says: “As the provider of the ECMS platform, Vermeg is pleased to continue to support banks on collateral management and to facilitate their onboarding to the unified platform.
“Vermeg and Clearstream are creating a unique solution that will enable banks to benefit from the best operational set-up for all types of assets, both marketable assets and credit claims, through a direct connection to ECMS and to Clearstream triparty collateral services.”
