BlackRock has become one of the first investment firms to provide money market funds for a new cash reinvestment service feature by Euroclear Bank. Euroclear clients will be able to reinvest cash as collateral received in Euroclear Bank managed tri-party transactions into an array of money market funds seamlessly through FundSettle, the banks fund transaction processing platform.
Re-investing cash collateral is a frequent challenge in these types of triparty transactions.
The cash re-investment service is available in euros, British pounds and US dollars.
Jo Van de Velde, managing director and head of Product Management at Euroclear, said: Clients have come to rely on Euroclear as an agile leader of innovation and choice, a pacesetter to anticipate and support evolving market trends. Our close co-operation with BlackRock, as one of the early adopters to make their money market funds available, will meet the increasing demand from our clients to avoid re-deposit risks. Having multiple options to re-invest cash collateral is a key requirement from market participants in the secured markets. By offering a seamless cash re-investment service in money market funds to our clients, without any complexity, we add another dimension to delivering our post-trade made easy mission.
(JDC)