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
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