Lombard Risk has partnered with Clearstream to gain access to its tri-party collateral management services ahead of new margin requirements in Europe.
The agreement will enable greater opportunities for real-time collateral mobilisation, as well as straight-through collateral management processing across asset classes.
Mutual clients will also be able to leave their tri-party collateral management actives in repo and securities lending to gain access to central bank collateralisation at a Eurosystem level.
“This partnership allows our sell and buy-side clients to benefit from simplified access to a STP collateral management process and to leverage a single collateral pool, while re-using netting opportunities across both cleared and uncleared segments across multiple jurisdictions,” said Jean-Robert Wilkin, head of market development, global funding and financing (GFF), Clearstream.
The partnerships comes ahead of the next phase of the initial margin rules which will require firms to exchange two-way margin on a non-netted basis for uncleared derivatives exceeding €1.5 trillion.
This will put added pressure on smaller sized banks and asset managers to ensure their collateral is segregated a custodian or tri-party agent.
“This new tri-party connection enriches connectivity through our flagship collateral management solution, COLLINE, and will enhance our clients’ experience and choice,” said Helen Nicol, global product director, collateral solutions, Lombard Risk.