Clearstream goes live with enhanced triparty collateral management service

The OneClearstream collateral management service allows assets to be moved across its domestic and international CSD.
By Joe Parsons

Clearstream has gone live with a new tri-party collateral management service enabling banks to mobilise assets across its central securities depositories (CSDs).

As part of its enhanced asset servicing model for TARGET2 Securities (T2S), the OneClearstream collateral management service (OneCMS) allows assets to be move across Clearstream Banking Luxembourg, its international CSD (ICSD), and its Frankfurt-based German CSD.

Clearstream also announced it has processed the first collateral allocations for DZ Bank using OneCMS.

“We are pleased that Clearstream has implemented a single collateral management service enabling full interoperability between Clearstream’s CSD and ICSD,” said Olivier Deutscher, head of short-term liquidity, repo and collateral trading/group treasury, DZ Bank.

“This new model will improve our management of liquidity and collateral, therefore helping to further unlock numerous operational efficiency gains.”

Clearstream’s enhanced T2S model aims to bring together liquidity pools held at is local CSD and ICSD, allowing interoperability for assets and to further automate collateral management processes.

 It stated it will soon launch the second phase of OneCMS, in which its Frankfurt CSD will offer “ICSD-like” collateral management services settling in T2S, including a euro tri-party service settling in central bank money.

Clearstream plans to go live with a new asset servicing model in the second half of 2018 that will bring all cross-border settlement and asset servicing tasks in the Eurozone under a single platform. 

The launch of the service follows that of its Belgium counterpart – Euroclear – which has also rolled out a new asset mobilisation model to allow assets held in T2S to be used for non-euro financing.