Euroclear’s Collateral Highway saw 12% growth in 2013, with the biggest growth in collateral traffic coming from financial institutions increasingly accessing collateralized liquidity from central banks assembled on the highway.
Average daily collateral outstanding on the Collateral Highway grew from €700 billion at the end of 2012 to over €787 billion at the close of 2013.
The Highway, which allows users to seamlessly source and mobilize their securities irrespective of location in order to cover trading exposures and to access central bank liquidity, saw peaks of up to €830 billion in the second half of the year.
Tim Howell, CEO of Euroclear, says: “The success enjoyed by the Collateral Highway is an endorsement of Euroclear’s strategy to focus on providing friction-free mobility of assets globally which can then be allocated optimally to key liquidity providers, such as central banks and risk-mitigating central clearing counterparties (CCPs). The increased traffic on the Collateral Highway justifies our multi-year investment plan to deliver an open market collateral management infrastructure solution.”
Since its inception in 2012, eight CCPs across the globe have become active on the Collateral Highway. These include CME, ICE Clear, LCH.Clearnet and, most recently, the Dubai Central Clearing Corporation. CCPs and their General Clearing Members benefit from the Collateral Highway as it allows initial margin to be posted in an efficient, low-risk and fully automated manner.
Euroclear’s Collateral Highway Grows 12% in 2013
Euroclear’s Collateral Highway saw 12% growth in 2013, with the biggest growth in collateral traffic coming from financial institutions increasingly accessing collateralized liquidity from central banks assembled on the highway.