CloudMargin has entered into an agreement with DTCC-Euroclear GlobalCollateral, the joint venture between Euroclear and The Depository Trust & Clearing Corporation (DTCC), to connect with the latter’s Margin Transit Utility (MTU).
The partnership will expand CloudMargin’s settlement capability, allowing users to access MTU from the cloud. It will also allow for automation of the entire collateral lifecycle, ultimately improving data accuracy and transparency.
CloudMargin will become the first technology provider to join the GlobalCollateral Partner Program. Mutual clients will be able to access all MTU capabilities, including the ability to send automatic settlement instructions to custodians using stored instructions from the DTCC Alert database.
Users will also gain access to MTU’s automated intraday settlement status information.
MTU is designed to automate and streamline the processing and settlement of margin and collateral for dealers and buy-side firms, reducing risk and costs for market participants.
Ted Leveroni, chief commercial officer at GlobalCollateral, said: “We welcome CloudMargin to our partner programme to bring increased efficiencies, accuracy and transparency to the collateral management process. This integration will enable a true end-to-end solution, allowing our mutual clients to streamline and scale up processes at a time of increasing collateral and margin call demands.”
Simon Millington, CloudMargin’s head of product management, added: “We are very excited about this integration with GlobalCollateral and look forward to bringing great new efficiencies to our respective users.”
“We already have significant interest among our clients and prospects, particularly in this environment where the requirements to post daily variation margin have introduced a pressing need for technological solutions and a community of providers available at clients’ fingertips.”
The link between CloudMargin and MTU is expected to go live in Q4 2017.
