Eurex has joined a partnership with software provider VERMEG to offer clients a unique collateral management solution connecting the Eurosystem Collateral Management System (ECMS), Clearstream’s Triparty services and Eurex’s GC Pooling.
This partnership will provide new opportunities for collateral optimization via the re-use of collateral to increase clients’ Central Bank Credit Line within the new ECMS.
GC Pooling is the leading pan-European cash-driven liquidity pool for secured funding with more than 160 buy and sell side firms. It ensures straight-through processing with automated connectivity to Eurex Clearing as a central counterparty and real time collateral management services provided by Deutsche Börse’s post-trade business Clearstream.
Implementation of ECMS in November 2024 will provide new opportunities for collateral optimization and mobilization in the Eurozone through GC Pooling re-use. This includes seamless refinancing with national central banks, collateralization of CCP margin, and collateralization of bilateral margin.
The ECB is using the ECMS to harmonize the collateral management practices of national central banks across the Eurozone. Leveraging VERMEG’s collateral solution, Eurex’s clients will benefit from enhanced liquidity management and collateral optimization. VERMEG’s Easy Collateral is a digital and cloud-based plug and play platform to monitor, optimize and process collateral operations. The increased efficiency in collateral operations is also enhanced by the STP Triparty offer by Clearstream & VERMEG.
