Clearstream and Indian Clearing Corporation Limited (ICCL) have agreed to co-operate on collateral management and have signed an agreement on linking ICCL to Clearstream’s integrated collateral management engine, the Global Liquidity Hub.
They say this enables clearing members to manage their ICCL margin requirements resulting from trades executed on the BSE platform with the Global Liquidity Hub. Collateral can be pooled at the Global Liquidity Hub from assets held at Clearstream and partner agent banks to avoid bottlenecks in the sourcing of the right high-grade collateral to meet the CCP’s margin requirements.
“BSE and ICCL customers will benefit from streamlined tri-party collateral management through our Global Liquidity Hub,” said Stefan Lepp, head of global securities financing and member of the Clearstream executive board. “This new partnership is part of our strategy of enabling customers to use the Global Liquidity Hub as a single source of liquidity to collateralise multiple global exposures in a streamlined and optimised manner.”
Added K. Kumar, ICCL managing director & CEO: “ICCL is committed to providing enhanced clearing, collateral management and risk management services to help members comply with new regulatory requirements and to bring Indian trading practices in line with the best in the world. Clearstream’s tri-party collateral solution provides ICCL members with an additional and efficient way of meeting margin requirements, via one of the best linked collateral pools globally.”