Euroclear Bank Introduces Unlimited Collateral Re-use Feature
Effective immediately, Euroclear Bank’s triparty collateral management clients can increase the liquidity of their securities collateral by re-using these securities to cover multiple exposures arising from repos, securities lending, derivatives or other collateralized transactions with different counterparties. Client collateral administered by Euroclear Bank, as triparty agent, is currently valued at over €320bn daily. Clients now have the capacity to pool securities received as collateral and re-use them in any other triparty transaction. This new re-use feature is fully automated and integrated within Euroclear Bank’s triparty collateral-management service. AutoSelect, the automatic securities allocation and monitoring module, has been upgraded to manage multiple collateral re-use possibilities within each of the 15 AutoSelect daily cycles. Collateral givers will retain full control of securities pledged as collateral, and may substitute all securities from all legs of all collateralized transactions during each and every one of the AutoSelect cycles.