Aviva Investors has signed up as the first buy-side client for the new account type, as well as JP Morgan as the first clearing member for the service.
The former global head of collateral management product at JP Morgan, who joined Lombard Risk in 2016, will head up the expansion.
Market participants and R3 members CIBC, Commerzbank, Credit Suisse, UBS and ING have collaborated with HQLAx to produce a collateral lending offering.
Areas including collateral and liquidity optimisation require attention at the completion of the ECB’s T2S project in Europe, according to a Deutsche Bank whitepaper.
The French bank will use the platform for its collateral management operations across the prime services and securities services businesses globally.
The two companies will allow traders to rewrite their OTC derivatives agreements and pass on the operational workflow.
The delay will help ease fears among buy-side firms, many which were reportedly nowhere near ready to comply with the 1 March go-live.
The FSB has stressed potential issues of access and leverage which may occur through re-hypothecation of assets and collateral re-use.
Asset managers have barely completed the re-write of collateral exchange agreements for the incoming variation margin rules.
Deutsche Börse will partner with members of the Liquidity Alliance on a blockchain offering targeting cross-border collateral management.