The Australian stock exchange (ASX), Brazilian fixed income CSD Cetip, the ICSD and CSD Clearstream, Spanish CSD Iberclear and South African CSD Strate recently formed a “Liquidity Alliance” to address the global collateral shortfall. The five initial members of the alliance will exchange information, identify common needs and extend global collateral solutions while promoting informed research, ideas and opinions.
The alliance sees its routes in the individual partnerships forged by Clearstream with the four other market infrastructures, whereby the ICSD offers a white labeled solution via its collateral management platform, which mobilizes assets belonging to clients of the partner CSDs across border without the assets having to leave their country of origin. Clearstreams Liquidity Hub GO service went live with the Brazilian CSD Cetip in July 2011. Since then Clearstream has entered into agreements with and is in various stages of development with ASX, Strate iand Iberclear. Cetip’s international assets will migrated to the Clearstream platform in the second half of this year.
Strate CEO Monica Singer explains why the liquidity alliance is an important step for the South African CSD.
Janet Du Chenne