Verdipapirsentralen (VPS), the Norwegian CSD, will implement Clearstream’s automated collateral management platform.
The new service will enable VPS to offer to Norwegian market participants the allocation, optimization and substitution of collateral to cover domestic exposures on a white labeled basis.
The Liquidity Hub GO service sees assets remaining on the accounts in the local market environment thus meeting local market regulations.
Going forward, the partnership between VPS and Clearstream will also help Norwegian financial institutions and VPS customers to overcome internal collateral fragmentation across systems.
John-Arne Haugerud, CEO at VPS, said: “Our partnership with Clearstream will provide Norwegian financial institutions with the means to keep up with the increasing collateral requirements of Norwegian and international regulations. From a risk perspective, it was particularly important that the underlying assets do not leave the Norwegian jurisdiction and this is guaranteed under the Liquidity Hub GO service. The Global Liquidity Hub offers more than a domestic solution and we will explore this potential along our journey with Clearstream.”
Stefan Lepp, Member of the Executive Board and Head of Global Securities Financing at Clearstream, said: “We are pleased about VPS joining our outsourcing service, thus including the first Scandinavian market in our global collateral management model.”
VPS joins Brazil’s fixed income CSD Cetip, the Australian Stock Exchange, Iberclear and South African CSD Strate as other users of Liquidity Hub GO. The Singapore Stock Exchange and CDS in Canada have signed letters of intent with Clearstream and other market infrastructures are in the process of evaluating the implementation of the white-labeled collateral management outsourcing service for their domestic markets.
Norwegian CSD Outsources Collateral Management to Clearstream
Verdipapirsentralen (VPS), the Norwegian CSD, will implement Clearstream’s automated collateral management platform.