MARKET INFRASTRUCTURE

Clearstream bolsters buy-side tri-party access with partnership

Clearstream and ColleX will collaborate in a bid to offer simplified buy-side access to tri-party management.

By Paul Walsh paul.walsh@strategic-i.com June 19, 2017 9:51 AM GMT
Clearstream will enter into a partnership with collateral exchange platform ColleX in a bid to simplify access for the buy-side to tri-party collateral management.

The collaboration will integrate ColleX’s visible pricing and liquidity for secured lending transactions with Clearstream’s collateral management services.

Through the introduction of Clearstream Repurchase Conditions (CRC), Clearstream said it aims to set out tri-party provisions and collateral acceptability in one document.

This grants participants access to a counterparty pool without the need for multiple bilateral legal agreements, Clearstream added.

Over 70 participants have signed up to the CRC including dealer counterparts, insurers and corporate treasurers.

ColleX was initially launched in 2016 as liquidity hub for collateral lending and repo transactions.

“Providing our buy-side clients with a simplified access to tri-party collateral management, creating a single collateral pool and exploring re-use and netting opportunities are among the objectives of our new global funding and financing product offering,” said Marcel Naas, head of global funding and financing at Deutsche Böerse Group.

The move is the latest partnership for the ColleX platform following its integration with Pirum Systems’ tools for post-trade connectivity at the beginning of the year.