Euroclear plans to extend its flagship ‘Collateral Highway’ management service to the U.S. from May 2016, through its joint venture with the Depositary Trust and Clearing Corporation (DTCC).
Speaking at Euroclear’s Collateral Conference, Oliver Grimonpont, the newly appointed global head of Collateral Management Services, told delegates opening the Collateral Highway to U.S. market participants will be the next step, which will allow clients to mobilize their U.S. assets across geographies to meet their cross-border exposures.
“There is no room on the Highway for silos. It is true open system. The more collateral takers, collateral givers, central counterparties, central banks we have on the Highway the better we are,” says Grimonpont.
In March, Euroclear completed the integration of the U.K. and Irish market onto the Collateral Highway, allowing clients to pool their U.K. and Irish securities with their international securities.
Furthermore last year it also added Hong Kong and Singapore, via Standard Chartered Bank, onto the Collateral Highway.
The expansion of the collateral management service to the U.S. is the next step for the Euroclear-DTCC joint venture, as the two organizations continue to build out ‘Global Collateral Ltd’.
In addition, Euroclear also plans to introduce several improvements to the Highway, including facilitating equity finance, and enhancing AutoSelect, Euroclear’s Collateral Highway engine, to allow real-time collateral allocation algorithms and monitoring, from January next year.
“As volumes continue to grow, the number of entry and exit points increases. With more clients joining, they continue to seek faster and more efficient infrastructure,” adds Grimonpont.
Euroclear to Extend Collateral Highway to the U.S.
Euroclear plans to extend its flagship ‘Collateral Highway’ management service to the U.S. from May 2016, through its joint venture with the Depositary Trust and Clearing Corporation (DTCC).