(The following press release from Deutsche Boerse was received by e-mail.
It was not confirmed by the sender.)
Deutsche Boerse Group
Clearstream and Citi partner in collateral management
* Clearstream announces new partner for its agent bank service Liquidity
* Unique model: Clearstream handles global collateral management while
client assets remain with Citi
* Citi customers gain all the security and efficiency advantages offered
through Clearstream’s Global Liquidity Hub
Clearstream and Citi have formalised their plans to a customised tri-party
collateral management solution that Citi will offer to its customers. The
companies have now signed a Letter of Intent to move ahead with their
collaboration to enable joint customers to benefit from Clearstream’s
award-winning Global Liquidity Hub, an integrated suite of collateral
management and securities lending services.
The Liquidity Hub Connect service will enable Citi customers to consolidate
their collateral holdings for use within the Global Liquidity Hub in order
gain efficient coverage of their global exposures from a single optimised
collateral pool. The service delivers twofold benefits as customers retain
their asset portfolios within Citi’s extensive custody network while
Clearstream’s collateral management engine carries out the complex
management functions such as automated optimisation and substitution.
Improving access to collateral, particularly those balances held
is seen as a crucial issue for the financial industry at a time when
drive demand for optimisation as well as adequate levels of capital and
liquidity. Accordingly, an important and unique feature of Clearstream's
Liquidity Hub Connect is that it mobilises collateral in real time and only
to the amount that is required. As a result, it allows Citi’s clients to
their entire available inventory intelligently, but without putting their
domestic trading and financing activities at risk.
Jeffrey Tessler, CEO Clearstream, said: “I am delighted to have Citi as a
partner for the further extension of Clearstream’s comprehensive liquidity
pool. Liquidity Hub Connect will enable Citi to offer its customers the
advantages of our collateral management services, which are widely
as the best in the industry and which continue to develop. We’ve been on
fast lane with these services for a number of years now and the open
architecture of the Global Liquidity Hub means our collateral pool
broaden and deepen, while we continue to deliver collateral management
that are exceptionally user-friendly – and live.”
Sanjiv Sawhney, EMEA Head of Securities and Fund Services at Citi, added:
are delighted to form an alliance with a leading tri-party agent such as
Clearstream to provide our mutual clients with a solution that improves
collateral optimisation across all asset classes and creates significant
efficiency gains. This alliance further demonstrates Citi’s commitment to
developing an open architecture that enables our clients to access
pools seamlessly and eliminate collateral fragmentation.”
This latest evolution of Liquidity Hub Connect is a natural extension to
concept of Clearstream’s outsourced, white-labelled Liquidity Hub GO
Outsourcing) initiative, which is already live with Brazilian CSD Cetip and
at various stages of development with four other financial infrastructures
around the world: ASX in Australia, Strate in South Africa, CDS in Canada
Iberclear in Spain.
Clearstream customers also benefit from its unique position within Deutsche
Börse Group and its integrated business model. Having a central
within the same group – Eurex Clearing – enables the companies to deliver
services such as the industry-leading and unique GC Pooling service, a
tri-party repo-style service secured in central bank money. This service is
being developed further with GC Pooling Select which will enable corporates
join GC Pooling as cash providers.
Nicolas Nonnenmacher, +352 243 36115
Clearstream is the leading service provider in liquidity and collateral
management services in Europe with more than 20 years of experience in this
As an international central securities depository (ICSD) headquartered in
Luxembourg, Clearstream provides the post-trade infrastructure for the
market and services for securities from 53 domestic markets worldwide.
Clearstream’s customers comprise approximately 2,500 financial institutions
more than 110 countries. Its services include the issuance, settlement and
custody of securities, as well as Investment Fund Services and Global
Securities Financing. With around 11 trillion Euros in assets under
Clearstream is one of the world’s largest settlement and custody firms for
domestic and international securities.
As a central securities depository (CSD) based in Frankfurt, Clearstream
provides the post-trade infrastructure for the German securities industry,
offering access to a growing number of markets in Europe.
Further information: www.clearstream.com
Further information from Deutsche Boerse Group
is available under http://deutsche-boerse.com/press
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