London
27 July 2016
Reporter: Stephanie Palmer

New mandate for Euroclear-DTCC collaboration


Northern Trust has adopted the margin settlement service offering of GlobalCollateral, the joint venture between Euroclear and the Depository Trust & Clearing Corporation (DTCC).

The GlobalCollateral Settlement Messaging Service automated collateral settlement tracking in a bid to improve custodian communications and client service.

By removing the manual processes involved in the margin call procedure, it is intended to improve collateral movement with settlement instructions.

The service delivers instructions to the appropriate custodian and sends confirmed details back to Northern Trust and its counterparties. It also provides automated notification of completion and receipt.

According to GlobalCollateral, the service was launched as a response to global derivatives regulations that are likely to create an increase in margin calls, and operational complexity.

It is intended to improve operational efficiency, reliability and transparency, while also generally streamlining the process. Northern Trust intends to go live with the service in the first half of 2017.

Mark Jennis, executive chairman at GlobalCollateral, said: “Global derivatives regulation and the resulting increase in collateral calls will require market participants to improve their collateral management processes.”

He added: “It is great to see Northern Trust and other leading global fund administrators recognise the benefits of an automated margin call process, including lower operational risk, increased transparency and improved client and counterparty satisfaction.”

Pete Cherecwich, head of corporate and institutional services for the Americas at Northern Trust, said: “We believe that one of the keys to excellent client service is to take advantage of new and innovative technologies, especially those that not only create operational efficiencies and improved risk management, but can also enable us to provide increased transparency to our clients.”

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
Ogier boosts their firm’s partnership
22 August 2017 | George Town | Reporter: Jenna Lomax
Huckle and Dryden were both previously part of the Cayman investment funds team and will take the firm’s global partnership to 54
ISDA: Transition period essential for post-Brexit derivatives trading
21 August 2017 | New York | Reporter: Stephanie Palmer
The International Swaps and Derivatives Association has urged UK and EU regulators to implement transitional provisions for derivatives trading after Brexit
SimCorp sees extension of Danish mandate
21 August 2017 | Copenhagen | Reporter: Stephanie Palmer
Danish asset manager C WorldWide Asset Management Fondsmæglerselskab has extended its SimCorp Dimension licence agreement to include the Data Warehouse Manager and the SimCorp Coric client communications tool
Liquidnet expands its EMEA team
18 August 2017 | London | Reporter: Jenna Lomax
Strobel will report to Bob Garrett, who is head of technology and based in the New York office
TPAs and managers looking to outsource fintech
18 August 2017 | London | Reporter: Jenna Lomax
Global third-party administrators and asset managers are looking to outsource financial technology at an increasing rate, according to Domenic Ionadi, strategic account manager at Confluence
Boeing and JCP name Northern Trust as global custodian
17 August 2017 | Chicago | Reporter: Jenna Lomax
The Boeing Company has mandated Northern Trust to act as global custodian for its €54 billion defined contribution retirement plan
Whitebox Advisors chooses Broadridge suite solution
17 August 2017 | New York | Reporter: Jenna Lomax
Whitebox Advisors has mandated Broadridge Financial Solutions to transform its technology platform into a fully integrated, hedge fund operation
More news