MARKET INFRASTRUCTURE

GlobalCollateral aims to smooth cross-Atlantic access

The joint venture between the DTCC and Euroclear has launched a new offering targeting improved collateral access.

By Paul Walsh paul.walsh@strategic-i.com  March 15, 2017 4:55 PM GMT
DTCC-Euroclear Global Collateral has launched an Inventory Management Service (IMS), designed to enable market participants to mobilise securities from the US to Europe for use as collateral.

The IMS aims to provide financial institutions with improved collateral access across two global market infrastructures servicing a combined $78 trillion in assets.

GlobalCollateral IMS also aims to enable participants to use their Depository Trust Company (DTC) eligible securities in the US, including US equities, corporate bonds and asset backed securities, for collateral purposes within Euroclear.

“The launch of IMS demonstrates what we, as an industry, can achieve when we collaborate with each other,” said Mark Jennis, executive chairman of GlobalCollateral.

“As the demand for high-quality collateral continues to grow, IMS provides critical access to new collateral pools.”

The service primarily aims to target market participants’ demand to efficiently and cost effectively move dollar assets into Europe, as well as increase optimisation of global collateral.

“This is a major step for GlobalCollateral,” said Michael Shipton, chief executive at GlobalCollateral. IMS delivers one of the joint venture’s key objectives – to address what market practitioners have long recognised as a critical need to be able to directly mobilise and use collateral across borders and to move dollar assets into Europe.”