CajaMadrid has become the first Spanish bank to sign up for Euroclear Bank’s tri-party collateral management service. It will use Euroclear to support its activities as both cash provider and collateral provider. As collateral giver, CajaMadrid will access counterparties in Euroclear Bank.
“Improving our securities financing activity is one of the main pillars Of CajaMadrid’s treasury strategy,” says Jaime Comunin, Managing Director, Treasury, CajaMadrid. “That is why we are extremely proud to be the first Spanish entity to carry out tri-party repose deals with Euroclear Bank. Tri-party repose not only allows us to optimise our financing requirements, but also present new cash-lending opportunities as well. CajaMadrid believes that this business offers great potential, and it is one that we are keen to exploit to maximum effect in the Spanish market.”
Olivier Grimonpont, Director and Head of Collateral Services Product Management at Euroclear SA/NV, welcomed CajMadrid as the first Spanish user of the Brussels-based ICSD’s tri-party collateral management services. “Their decision underpins Euroclear Bank’s leading role as a tri-party agent in the securities financing sector, at a time when our business has grown to unprecedented levels,” he says.
Euroclear says its tri-party collateral management is growing at an annual rate of 57%, with current daily levels at a record Euros 255 billion outstanding, compared with Euros 162 billion at the beginning of 2005.
CajaMadrid is the fourth-largest financial group in Spain, with 2005 year-end volumes of Euros 180.2 trillion.