DEUTSCHE BOERSE'S CLEARSTREAM IN PARTNERSHIP WITH BELFIUS (ENG)
(The following press release from Deutsche Boerse was received by e-mail. It was not confirmed by the sender.)
News Release Deutsche Boerse Group 17.01.13
Clearstream partnership with Belfius expands global collateral management services to bilateral OTC derivatives Solution is compliant with upcoming regulations on collateralisation * Further bolsters the unified collateral pool bridging bilateral and triparty trades to combat the challenge of collateral fragmentation in the market * Integrated with Clearstream’s collateral management products
Clearstream and Belfius have agreed to develop exclusively a new collateral
management activity for bilateral trades, focusing on over-the-counter (OTC) derivatives and aimed primarily at corporates and medium-sized banks. The service, which will leverage Belfius’ specialist experience, will be white-labelled by Clearstream and offered to its clients.
It is expected that the new outsourced service will be launched in 2013 following the signature of a Letter of Intent. The deal is the latest in a number of strategic partnerships created by Clearstream as it extends the reach and capabilities of its Global Liquidity Hub, a collateral management environment delivering worldwide services across borders, asset classes, time zones and products on an open architecture basis.
The partnership with Belfius will enable Clearstream customers to further bolster the globally unified collateral pool that bridges the bilateral and
tri-party worlds and will optimise collateral management across both cleared and uncleared OTC derivative trades by further reducing collateral fragmentation.
The new service will be compliant with the best practices and standards in the European Market Infrastructure Regulation (EMIR) that will be enacted this summer. Clearstream will particularly target mid-sized banks and buy-side customers and will offer margin calls, dispute management, portfolio reconciliation, legal contract review and administration, payments and settlements reporting, a cash reinvestment mechanism and collateral transformation.
Stefan Lepp, Head of Global Securities Financing at Clearstream, said this latest partnership reflects a welcome and important expansion of the Global
Liquidity Hub that would deliver not only a new service to banks but also strengthen Clearstream’s offering to the corporate world in line with the growing demand in the OTC derivativesspace.
“We’re delighted to be working in partnership with Belfius and to be expanding our service portfolio both to buy and sell-sides as collateral management is a priority right across our industry,” he said. “With this unique service, we are able to address the growing pressure triggered by regulatory changes in the OTC derivatives world on a short time-to-market basis by combining the outstanding expertise of Belfius with the state of the art collateral management product range of Clearstream. Forging strategic partnerships with key industry players is an important part of Clearstream’s business model and we are sure our relationship with Belfius will be very beneficial for our customers.”
Luc Van Thielen, Chief Operations Officer at Belfius Bank, said he was very
pleased to be entering into this partnership with Clearstream.
“This is the recognition, by a well-regarded market player, that Belfius has robust collateral management processes in place. Especially in the changing
context of EMIR, this partnership can be of real added value to the market for players active in the OTC derivative space. The OTC collateral management services will be an important complement to Clearstream’s service offering and will fit seamlessly into the Global Liquidity Hub.”
Clearstream is the post-trade services and global liquidity provider within
Deutsche Börse Group. As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 53 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in 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 more than EUR 11 trillion in assets under
custody, 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 also provides the post-trade infrastructure for the German securities industry, offering access to a large number of markets in Europe.
Further information: www.clearstream.com
About Belfius Bank & Insurance
Belfius Bank & Insurance is a bank solidly rooted at a local level, carrying out commercial activities in Belgium in three main fields: retail and commercial banking, public sector financial services and insurance. Supported by some 150 years of experience in the public sector and 50 years in the retail client segment, Belfius Bank & Insurance is entirely held by the Belgian State via the Société Fédérale de Participations et d’Investissement (“SFPI”). Its shares are not market listed.
Further information: www.belfius.be
Media contact Clearstream
Nicolas Nonnenmacher, +352-243-36115 firstname.lastname@example.org
Media contact Belfius
Legally required information for business correspondence/ Gesetzliche Pflichtangaben fuer Geschaeftskorrespondenz: http://deutsche-boerse.com/letterhead