Euroclear Bank and LCH.Clearnet Ltd have unveiled a new opportunity for LCH.Clearnet Ltd members to pledge securities through Euroclear Bank’s triparty collateral management service to cover their margin obligations with LCH.Clearnet Ltd.
LCH.Clearnet Ltd will continue to manage margin requirements for its members, with Euroclear Bank serving as a neutral agent to optimise the use of collateral for mutual clients. The service covers transactions for which LCH.Clearnet Ltd acts as central counterparty in equity and commodity derivatives, fixed income and swaps.
“This new service represents another possibility for our clients to consolidate their collateral management across more business streams,” Olivier Grimonpont, Director and Head of Collateral Services and Securities Lending and Borrowing at Euroclear Bank.
Colin Woodley, Head of Operations at LCH.Clearnet Ltd adds: “We are very pleased to introduce this valuable extension to our collateral management service, which will result in cost and operational process savings for our members across the full range of markets served by LCH.Clearnet Ltd.”