Clearstream has announced that it is rolling out OTC Collateral, a bilateral collateral management service which will strengthen the over-the-counter (OTC) processing capabilities of the Global Liquidity Hub, the company’s integrated risk and liquidity management solution. The full lifecycle of bilateral collateral management activity will now be supported via the Global Liquidity Hub, from Credit Support Annex (CSA) review and administration, mark-to-market, margining, dispute management and portfolio reconciliation to payment and settlement follow-up and reporting.

OTC Collateral will help customers overcome collateral fragmentation and optimise allocation by enabling them to cover over-the-counter, triparty and central counterparty (CCP) exposures from a single collateral pool. This optimisation opportunity will be especially useful for derivative exposures, as customers are currently facing the challenge of managing two parallel streams of exposures for cleared and uncleared collateral trades.

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