Euroclear Bank has processed the first ever cross-border triparty repo transaction using Korean government debt as collateral for DekaBank and Morgan Stanley.
Euroclear Bank linked with the Korea Securities Depository (KSD) in September 2009. The arrangement enables market participants to settle cross-border transactions involving Korean government bonds and hold them in custody with Euroclear Bank to use as collateral to support a range of financing deals.
Frdric Hannequart, Chairman of Euroclear Bank, said: “There is a growinginterest in Euroclear Bank’s transcontinental financing capabilities as atriparty agent. We are assisting more and more European firms to financerepos involving European and major Asia-Pacific currencies, with localAsian counterparties and securities as collateral. We are delighted to openthe Korean market to these opportunities. Given our long-standingoperational expertise in collateral management, we are equally committed toserving the Asia-Pacific region’s interests internationally.”
Grant Saunders, Head of Equity Financing & Tri Party Financing at DekaBank,stated: “Euroclear Bank’s triparty collateral management servicescomplement our ability to secure exposures with multiple counterpartiesworldwide. As commercially sourced liquidity can be hard to attain incertain markets, we welcome Euroclear Bank’s efforts to deepen securitiescollateral pools by making more types of securities, such as Koreangovernment bonds, available for financing purposes.”