08 December 2014
Reporter: Stephanie Palmer
Euroclear supports UniCredit for Eurosystem success
UniCredit has become the first commercial bank to secure Eurosystem credit operations under new rules, partnering up with the National Bank of Belgium while Euroclear will act as triparty collateral agent.

Changes in Eurosystem rules allow central banks to provide liquidity through a triparty platform.

UniCredit also benefits from the abolishment of the repatriation rule, a part of the Correspondent Central Banking Model (CCBM) that required Eurosystem counterparties to realign securities to their country of issuance before they’re pledged as collateral against euro liquidity.

The changes mean that banks can reduce the costs and operational burden associated with obtaining liquidity from Eurozone central banks.

Euroclear will facilitate the pledging of securities collateral through its partnership with the National Bank of Belgium, which will act as correspondent central bank.

Jean Hilgers, director of National Bank of Belgium, said: “By using Euroclear’s triparty platform Eurozone banks will now be able to pledge eligible securities from the nine major markets with which Euroclear Bank has a Eurosystem eligible link, with the National Bank of Belgium in order to obtain liquidity from their domestic central bank.”

Jo Van de Velde, managing director and head of Euroclear’s product management division, added: “Our resilient collateral management platform will serve as the gateway for UniCredit to pledge securities collateral to the National Bank of Belgium […] without the need for cross-border realignments.”

“Furthermore, by being part of the global Collateral Highway ecosystem, UniCredit will also be able to seamlessly track and mobilise their securities collateral in a timely manner, irrespective of geographic location, to wherever it is needed in order to support regular trading activity.”

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
MiFID II unbundling compliance will be last-minute scramble for 85 percent
23 June 2017 | London | Reporter: Stephanie Palmer
Asset managers are cutting it fine in compliance with research unbundling rules under MiFID II, with 85 percent saying they expect to be compliant in Q4 2017 or later, ahead of the January 2018 deadline
ICMA: NSFR will make EU repo less attractive
23 June 2017 | London | Reporter: Drew Nicol
The association also point to increased automation of highly manual and labour-intensive processes of the market as a way to mitigate rising costs and create efficiencies
Caceis welcomes two new clients to TEEPI
23 June 2017 | Luxembourg | Reporter: Stephanie Palmer
Swiss Life Global Solutions, a Luxembourg-based insurance and wealth management provider, and European asset manager Amundi have joined the Caceis Tailored Electronic Exchange Platform for Investors
ECB to launch new faster payments system
22 June 2017 | Frankfurt | Reporter: Stephanie Palmer
The European Central Bank (ECB) is expanding its TARGET 2 instant payments system to facilitate retail payments throughout Europe
Clients demand innovation in custody
22 June 2017 | New York | Reporter: Stephanie Palmer
Custodians must embrace new technologies if they’re to survive in the digital age, according to a survey of sell-side executives by BNP Paribas Securities Services and TABB Group
Citi recruits Matthew Bax
21 June 2017 | London | Reporter: Barney Dixon
Citi has hired Matthew Bax as its Europe, Middle East and Africa (EMEA) head of sales for custody and fund services
Denise Voss re-elected as ALFI chair
21 June 2017 | Luxembourg | Reporter: Stephanie Palmer
The Association of the Luxembourg Funds Industry has re-elected Denise Voss to serve a further two years as chair of the board of directors
More news