SECURITIES FINANCE

Clearstream and Pirum to automate collateral exposure for buy-side

Automated solutions for valuing collateral has become a pressing need for the buy-side since the onset of stricter margin rules.

By Joe Parsons joe.parsons@strategic-i.com October 11, 2017 11:02 AM GMT

Clearstream has collaborated with securities finance automation provider Pirum Systems to provide mutual buy-side clients real-time exposure visibility for their securities finance activity.

Buy-side clients can view their Clearstream collateral value in real-time in conjunction with underlying lending activity to manage their exposure levels more accuraly.

Automated solutions for valuing collateral has become a pressing need for the buy-side since the onset of stricter margin rules on bilaterally traded derivatives.

 “With this partnership we are continuing to broaden our global collateral network. The collaboration with Pirum will enable our clients to further increase their collateral efficiency and accuracy through real-time STP connectivity,” said Marcel Naas, head of global funding and financing, Deutsche Boerse Group.

The partnership will also automate the currently manual triparty required value (RQV) submission service, allowing clients’ collateral requirements to be automatically and securely submitted at any time.

Clients of Pirum will also be able to access the securities lending clearing service operated by Eurex Clearing, also part of the Deutsche Boerse group.