Thursday March 16 2017

News Source: Global Exchanges

Focus: Trading Systems and Technology

Type: General




DTCC-Euroclear Global Collateral Ltd (GlobalCollateral), a joint venture of The Depository Trust & Clearing Corporation (DTCC) and Euroclear, announced the launch of the Inventory Management Service (IMS), a transformative solution that enables market participants to seamlessly mobilize securities from the U.S. to Europe for use as collateral amid rising demand for high-quality securities to back trades. With IMS, financial institutions can optimize collateral across two of the largest global market infrastructures servicing a combined $78 trillion in assets.

GlobalCollateral IMS enables a participant to use their Depository Trust Company (DTC) eligible securities in the U.S., including U.S. equities, corporate bonds and asset backed securities, for collateral purposes within Euroclear. With IMS, dealers can consolidate assets across markets and asset classes, and deploy those assets to satisfy exposures globally. The new service satisfies market participants’ need to efficiently and cost effectively move dollar assets into Europe, as well as significantly advance the development of global collateral optimisation.

IMS was created to address the challenges of consolidating collateral pools and accessing a broader range of counterparties. The deployment of the service is a major step towards creating global collateral linkages and will help to alleviate the liquidity, regulatory and risk challenges that the industry has been facing.

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