First announced in 2013, Standard Chartered’s clients can now use Euroclear’s Open Inventory Sourcing capabilities on the global collateral conduit known as the Collateral Highway.
Under the agreement, mutual clients are able to utilise assets held at Standard Chartered to meet collateral requirements arising in triparty repos, central counterparty margining and other financing deals managed by Euroclear Bank via the Collateral Highway.
These assets do not leave the Standard Chartered network, but are used in a virtual single cross-border pool.
The solution enables clients to use their assets held in domestic Asian capital markets to tap international financing sources from a wide spectrum of non-Asian counterparties.
George Nast, global head of product management for transaction banking at Standard Chartered, stated: “We are delighted to strengthen our services to clients by partnering with Euroclear Bank.”
“By joining Euroclear’s Highway and using its unique technology, we are ensuring that customers can now take a holistic approach to collateral management and liquidity provision.”
This anniversary follows the recent joint venture announced by Euroclear and the DTCC, forming “DTCC – Euroclear Global Collateral Ltd”, which optimises collateral movements for clients of these depositories on a transatlantic basis.
Euroclear has also partnered with Citi and BNP Paribas Securities Services to offer similar cross-border collateral pooling initiatives.