Clearstream has signed a collaborative collateral management agreement with Indian-based central counterparty (CCP) the Indian Clearing Corporation Limited (ICCL), the latest step for the Deutsche Boerse owned CSD in its Asian expansion programme.
Through the agreement, the ICCL will become linked to Clearstream’s Global Liquidity Hub, whereby custodians and banks can use the Hub to manage their collateral requirements at the ICCL.
The link to Clearstream’s triparty collateral management solution will enable foreign investors trading on the Bombay Stock Exchange (BSE) to deposit and use high grade foreign sovereign bonds as collateral with ICCL.
The partnership marks the continued push into Asia by Deutsche Boerse, Clearstream’s parent company, which on Wednesday won regulatory approval to launch a clearing house in Singapore.
“This new partnership is part of our strategy of enabling customers to use the Global Liquidity Hub as a single source of liquidity to collateralise multiple global exposures in a streamlined and optimised manner,” says Stefan Lepp, head of Global Securities Financing, Clearstream.
Clearstream is looking to make further inroads in India, and according to its release, it is in discussion with market regulators over possible access models for government and corporate bonds, which would make it easier for international investors to invest in the Indian market.
Clearstream Signs Triparty Collateral Agreement with Indian CCP
Clearstream has signed a collaborative collateral management agreement with Indian-based central counterparty (CCP) the Indian Clearing Corporation Limited (ICCL), the latest step for the Deutsche Boerse owned CSD in its Asian expansion programme.