London
07 May 2014
Reporter: Stephen Durham
Euroclear and DTCC announce joint venture
The Boards of Euroclear and The Depository Trust & Clearing Corporation (DTCC) have authorised a joint venture to deliver a collateral processing infrastructure that will integrate both companies’ capabilities.

Both Euroclear and DTCC are industry owned and governed, and the firms will collaborate with market participants as solutions are developed.

The joint venture will initially focus on launching a margin transit utility (MTU) that will provide straight through processing to the settlement of margin obligations and piloting a collateral management utility (CMU) to address the pressing problem of sub-optimal collateral mobility and allocation at a global level.

The MTU service has already received significant interest from the industry. The MTU will take advantage of development work being undertaken by DTCC and the CMU pilot will use current Euroclear technology.

When fully operational, the utilities will be integrated to provide a seamless front-to-back collateral processing platform.

The joint venture will operate open architecture services, where DTCC’s and Euroclear’s settlement platforms represent two of many linked settlement locations. The intention is to extend access to other interested settlement platforms such as central securities depositories, custodians and settlement agents.

Tim Howell, CEO of Euroclear, said: "We are delighted to be partnering with DTCC on this important evolution of the post-trade industry.”

“In bringing together two of the industry's largest post-trade market infrastructures, we will be addressing sub-optimal collateral mobility and allocation issues by creating the biggest open architecture collateral processing ecosystem, accessible to all market participants across the globe.”

Consummation of the joint venture is subject to several conditions, including completion of definitive documentation, final approval from the Boards and receipt of any necessary regulatory approvals.

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Northern Trust has reported a 16 percent rise in assets under custody in Q2 2017.
Standard Chartered builds on securities services team
25 July 2017 | Singapore | Reporter: Jenna Lomax
Standard Chartered has appointed Ryan Cuthbertson as head of product management, custody and clearing, securities services and transaction banking
UniCredit embarks on test phase for European instant payments
25 July 2017 | Milan | Reporter: Stephanie Palmer
UniCredit has started testing EBA Clearing’s instant payment solution RT1, in preparation to roll out instant payments multinationally
Eagle Fund Accounting Solution to be used by Desjardins
24 July 2017 | | Reporter: Jenna Lomax
Desjardins Asset Management, part of Desjardins Group, previously signed with Eagle Accounting for its asset management in 2011
Clearstream gains Edmond de Rothschild as Vestima client
24 July 2017 | Switzerland | Reporter: Jenna Lomax
Vestima, Clearstream’s fund process programme, will assist Rothschild by processing its assets in its mutual funds and hedge funds on a single platform
Northern Trust to offer fund services to GuideStone Funds
24 July 2017 | Dallas | Reporter: Jenna Lomax
GuideStone Funds is a subsidiary of GuideStone Financial Resources, a financial service providing retirement, investment and life and health plans to evangelical Christian churches, educational institutions and ministry organisations
BNY Mellon recruits for alternative investment team
21 July 2017 | New York | Reporter: Jenna Lomax
BNY Mellon has made two senior appointments to its alternative investment services team
More news