Euroclear has entered a partnership with Transcend with the aim to introduce a new joint collateral optimisation service.
The service will bring together Euroclear’s collateral management infrastructure and data with Transcend’s optimisation platform to address clients’ collateral optimisation needs.
The new service is expected to launch in the first quarter of 2025.
Transcend is a technology company providing solutions including inventory management, collateral eligibility and optimisation. These innovative solutions help global market participants achieve better financial and operational performance by automating complex liquidity, funding and inventory decision making. Transcend’s optimisation platform leverages data from dealers, triparty agents, securities depositories and other sources to allow for holistic optimisation across collateral venues and straight through processing of allocations and movements.
Available through existing Euroclear connectivity, the new service will easily integrate critical data for smart decision making and settle optimised collateral allocations. By leveraging Transcend’s technology, clients will be able to configure optimisation scenarios, include external collateral pools to determine the best collateral use at Euroclear and perform ‘what-if’ analyses on specific constraints.
Olivier Grimonpont, Head of Product Management, Market Liquidity at Euroclear, commented:
“New regulatory requirements have made collateral optimisation a priority for dealers. This new service brings to the market the combined expertise of Euroclear and Transcend. Euroclear’s long-standing collateral management experience and robust infrastructure combined with Transcend’s best-in-class optimisation and booking technology offers an unparalleled solution to meet our clients’ needs for collateral optimisation.”
“We are excited to partner with Euroclear in offering our industry leading optimisation platform to the Euroclear’s leading collateral management platform to seamlessly optimise their collateral, liquidity and funding decisions. Transcend’s technology is already used by the world’s largest financial institutions and this joint service enables a quick way for Euroclear customers to seamlessly take advantage of our sophisticated platform and capabilities,” Bimal Kadikar, Transcend’s founder and CEO.
