Firms having to meet increased variation and initial margin requirements for cleared and non-cleared derivatives need solutions that enable them to manage these in a streamlined manner. In that regard, regulatory compliance will have to be also supported by leveraging funding and financing solutions to manage liquidity and above all, by the capacity to manage collateral from a single pool.
Clearstream helps firms navigate towards a holistic approach to collateral management and achieve the targeted operational excellence to overcome fragmentation. This entails, for instance, offering them the ability to mobilise collateral between different noncleared and cleared activities, to bridge the bilateral and triparty collateral management spaces, source collateral from different settlement locations and access CCP services. Margin management services for CCP-cleared and non-CCP derivatives include OTC collateral management for variation margin and initial margin as well as triparty services for the segregation.
Ultimately, the customers benefit from netting, collateral transformation, reuse and optimisation opportunities but also from a global collateral network built through collaboration and partnerships (e.g. Central Securities Depositories, vendors…) aimed at increasing collateral efficiency.