DTCC-EUROCLEAR GLOBAL COLLATERAL AND NEX PARTNER TO FURTHER STREAMLINE MARGIN CALL PROCESSES
GlobalCollateral’s MTU to link with NEX’s triResolve Margin, enabling users to centralize margin call operations
London/New York/Singapore/Hong Kong/Sydney, 11 April 2018 – DTCC-Euroclear Global Collateral Ltd (GlobalCollateral), a joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), and NEX a financial technology company at the centre of the global markets, today announced a new partnership to streamline and improve OTC derivatives margin call processes. As a new member of the GlobalCollateral Partner Program, NEX is currently working to link its triResolve Margin web-based collateral management solution with GlobalCollateral’s Margin Transit Utility (MTU) to provide mutual clients with a centralized view across margin call operations. The connected service will also help users to meet regulatory compliance objectives around the margining of uncleared OTC derivatives transactions.
Through this partnership, mutual users will be able to manage the entire margin call process on the triResolve Margin platform achieving greater straight through processing by leveraging out-of-the-box connectivity to both AcadiaSoft’s MarginSphere and new MTU functionality. The integrated service will allow triResolve Margin to automatically calculate margin requirements leveraging information from its reconciled trade, collateral balance and CSA data, and then communicate the details to MarginSphere. Once the call is matched and the collateral to be moved has been agreed in MarginSphere, it will then be automatically sent to MTU for standing settlement instruction enrichment from DTCC ALERT. MTU will then generate settlement instructions to the counterparty and/or custodian and receive real-time settlement updates back. Finally, MTU will communicate the settlement status back to triResolve Margin, completing the transaction.
“Many of today’s collateral management processes continue to be manual and siloed. As a result, greater levels of automation and straight through processing are urgently needed if firms are to keep pace with regulatory requirements and fluctuations in margin call volumes,” stated Mark Jennis, Executive Chairman at GlobalCollateral. “We welcome the opportunity to partner with NEX to not only increase automation and STP, but to also offer an easier path to adoption via the pre-integration of our services.”
“Currently over 110 clients use triResolve Margin to manage their collateral management workflow. We look forward to partnering with the MTU settlement service and further streamlining the collateral management process for our clients,” stated Raf Pritchard, CEO of triResolve.
With integration already underway for a number of mutual clients, the first clients are expected to go live in Q2.
DTCC-Euroclear GlobalCollateral Ltd (“GlobalCollateral”) is a joint-venture between DTCC and Euroclear, two of the world's largest post-trade infrastructures. An open architecture infrastructure designed to streamline collateral processing globally, GlobalCollateral provides both OTC derivatives and financing solutions that deliver transparency, collateral mobility, efficiency and security through two powerful utilities:
The Margin Transit Utility: enabling straight-through processing of margin calls and providing improved liquidity and operational risk management.
The Collateral Management Utility: automating collateral management tasks, re-positioning inventory seamlessly across settlement locations, making collateral available wherever and whenever it is needed.
For more information, visit: www.globalcollateral.net
NEX offers customers better ways to execute trades and manage risk. Our products and services underpin the entire trade lifecycle pre-, during and post-execution. Our electronic trading platforms are industry standards. Customers use our lifecycle management and information services to optimise portfolios, control risk and reduce costs. We partner with emerging technology companies to bring greater efficiency, transparency and scale to the world’s capital markets. NEX is headquartered in London with offices worldwide. For more information, visit www.nex.com
Kristi Morrow, GlobalCollateral
+ 1 617 880 6770
Melissa Rowling, Greentarget
+44 (0)207 324 5490
Craig MacDonald, Euroclear
+44 (0) 207 849 0315
Hod Klein, Vested
+1 917 765 8720
Harriet Leatherbarrow, Greentarget
+44 (0)20 7324 5483
Yuri van der Leest, Teneo Strategy
+852 3655 0504
Emma Cullen-Ward, OneProfile
+61 2 8915 9900