EUROPEAN UNION: Clearstream and ICE Clear Europe Launch Collaboration on Triparty Margin Collateral Management Service

Wednesday March 18 2015

The London-based central counterparty (CCP) ICE Clear Europe and the international central securities depository (ICSD) Clearstream Banking S.A. have launched a new collateral management partnership which enables clearing members to use their assets held at Clearstream to manage their margin requirements.

ICE Clear Europe offers its clearing members a triparty collateral management service by providing direct connectivity into Clearstream’s integrated collateral management engine, the Global Liquidity Hub. This link to the triparty collateral management solution of Clearstream enables ICE Clear Europe members to deposit and use securities as collateral to cover their risk exposures within a highly automated and efficient collateral environment.

The launch of this new service supports political moves to strengthen the stability of capital markets through an increased clearing of trades. The partnership between Clearstream and ICE Clear Europe helps to avoid bottlenecks in the sourcing of the right high-grade collateral to meet the CCP’s margin requirements. Collateral can be pooled at Clearstream’s Global Liquidity Hub to make it available for meeting margin requirements via the secure, fully automated triparty collateral management service.

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