Introduction
Unlocking the true potential of your portfolio in a robust, safe and proven environment
Liquidity constraints and regulatory demands are pushing liquidity, risk and balance sheet management to the forefront. The way firms manage their cash, collateral and margins is key to maintaining a competitive advantage.
Collateral management
Our Collateral management is the world’s first neutral and global open architecture infrastructure for collateral management.
- We optimise your access to liquidity.
- We connect you to one of the world’s largest pools of collateral and counterparts.
- We help you mobilise assets across borders and time-zones without compromising on security.
Securities financing
Balance sheet and regulatory pressures make it important to put your securities inventory to work through the interbank market, but also by using them to access liquidity from national Central Banks.
OTCD margining
A new global OTC derivatives trading framework requires solutions that give you full compliance on a scalable, cost-effective basis are key to remaining competitive in the new environment.
Our proven collateral management solutions and global network is experienced in helping banks to manage their derivative exposures across market segments.
Collateral contract and collateral schedule management
The use of collateral has massively expanded together with the number and complexity of products. Recognising the need for a fundamental overhaul of both the many contractual frameworks and their ongoing management, we have launched an ambitious multi-year program to enhance our industry-leading solutions.
Our aim is to provide a best-in-class user experience, being responsive to the needs of fast-moving markets.
Our clients trust us to mobilise more than thousands of collateral daily. We are committed to offering an industry leading end-to-end client experience in managing contracts and collateral schedules in the collateral space
Collateral backend desk lets you mobilise your collateral across borders, providers and time zones using our neutral and global open architecture infrastructure for collateral management. From its initial vision, we helped power the dramatic expansion of collateral markets, coping with an expanding range of products and supporting a multitude of legal and operational frameworks. With new regulations, high market volatility and a constant focus on liquidity, we will continue to build on its success and remain the best-in-class solution for all your collateral needs.
In that context, we are committed to providing an industry leading end-to-end client-contract-management experience through a program of improvements to be deployed throughout 2024, 2025 and beyond.
With decades of experience as a triparty agent, we offers a broad spectrum of products and services, managing collateral needs across a large range of legal frameworks from plain vanilla to more complex products. As part of our commitment to continuous improvement of the services we offer, we conducted an in-depth analysis on our end-to-end contract management process flows and the resulting client experience and identified ways we could improve both.
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Speeding-up the implementation of your triparty collateral schedules
Once you have executed the relevant master legal agreement, you then negotiate, with your counterparties, one or several triparty collateral schedules. You will find our triparty environment has a complete universe of collateral criteria allowing you to quickly and easily meet your firm’s collateral policies and financing needs. It is essential to set up schedules accurately and maintain control of their structure so that, at any time, you can see what triparty collateral schedules you have in place – active or under negotiation – and subsequently make any changes needed on a timely basis. Implementation of new and amended triparty schedules is a key step in driving your time-to-trade.
Euroclear is offering two communication channels, and associated workflows, to implement or amend your triparty collateral schedules.
Significant improvements
We are delivering a series of enhancements to make it a more powerful and simple to use online solution, designed to make the management of your triparty collateral schedules fast and efficient. You retain full control, you save time and you reduce your costs.
Although our platform is an intuitive digital tool, we appreciate that the drafting of triparty collateral schedules can be challenging. As of September 2024 we are Drafting experts in Collateral Operations will be available to guide/help you through the drafting process. Everything you need for help with the drafting or amending of collateral schedules will be just a support mail/call away. Don’t hesitate to contact us to set up a dedicated drafting training session to get you started or to request a refresher session.
Sending your request via email
We also continue to support the alternative to our digital solution – an email-based workflow
This alternative solution cannot offer the same turnaround time however, we have adapted our processes to also make this workflow faster, more transparent and more efficient.
Firstly, as from September 2024, all your draft requests will be directed to our dedicated team of collateral contract experts who will perform an initial completeness and coherency check of your request and, where required, revert to you with questions to understand, fine tune your request and make it ready for processing.
Change management – Impacts on current workflows
From fast track to template
We have streamlined our triparty collateral schedules drafting and implementation workflows by leveraging the digital template functionality.
When drafting a new collateral schedule, there will be three options to choose from.
- When you need to implement a collateral schedule for one specific account, you create a new (bespoke) collateral schedule and link it to that account.
- When you want to create a new collateral schedule that may be linked to multiple accounts either now or in the future, you draft a template that can be (re)-used for multiple (future) accounts.
- You link an existing collateral schedule template to an account.
More to come
New same-day bilateral exclusion solution
While we are making significant improvements to our collateral schedules workflow, we recognise the need to swiftly implement collateral exclusion requests, especially in response to sanctions, internal risk policy adjustment, market events or similar circumstances.
To cater to these bilateral Collateral Schedule amendment requests we will introduce a new same-day email exclusion workflow leveraging our newly developed digital workflow.
Streamlining our legal agreements
The legal framework of collateral management provides the foundation for the rules, rights and obligations of all parties involved and is often complex, being business and products specific.
With many different frameworks, navigating the maze can be difficult. We are working on simplifying our legal documentation, and especially reducing the number of agreements to the minimum required, whist maintaining a robust and complete framework tailored to your business needs.
Contract management – committed to improve your user experience
We are committed to you. We are committed to improving our overall collateral-contract-management support to make your life easier. A robust, secure environment, scalable for your business needs, with on-demand transparent reporting and full control of all your contract management at all times.
All the enhancements we have presented to you are using our current technology stack. Recognising the increasingly critical role of contract management in your day-to-day collateral business, we are working on re-architecting our contract management infrastructure. This is a longer-term undertaking and our objective is to deliver a touchless end-to-end digital solution for collateral-contract-management. This solution will include state-of-the-art collaborative platforms and will use new techniques like NLP to ease and automate the translation of your collateral requirements.
In any case, you can be confident that our solutions and developments will help you prepare your business for the future of our industry, responding faster to the ever-increasing pace of life.
Easing your admission and onboarding to our collateral services
As a Euroclear Bank client, you can take full advantage of our Collateral Highway products and services to meet your business needs. If you are not an existing Euroclear Bank client yet, our standard admission procedure allows you to gain access to our full, comprehensive range of services. If you only require access to a more limited ranges of services, we also offer a quicker, simpler admission process – providing access only to the specific services you require.
The application process is complex and lengthy – we plan to improve it
Our application process and due diligence is comprehensive, taking into account potential risks to financial stability and continued operation of the financial markets and meeting our KYC and ALM requirements. That will not change, but we are conducting a full review of our application process to make significant improvements, which will shorten the time taken to join the Collateral Highway community.
Contact our expert team: support@corpusbank.com
