• J.P. Morgan successfully executed the first live transaction, mobilizing collateral for Dutch pension fund investor PGGM using Distributed Ledger Technology (DLT).
• The solution is a collaboration with HQLA^X and Clearstream.
• Clients can instantly access and utilize securities to fulfill margin requirements regardless of their physical location.

Eurex Clearing, one of the leading clearing houses globally and part of Deutsche Börse Group, has launched its innovative DLT-facilitated collateral mobilization service. In a landmark first transaction, J.P. Morgan mobilized securities collateral for its client, Dutch pension fund investor PGGM, from another custody location to Clearstream Banking S.A. for use as margin collateral at Eurex Clearing. The underlying technology is provided by HQLA^X, a leading provider of DLT solutions for collateral management.

Streamlined collateral management for today’s dynamic markets 

This innovative solution has the potential to significantly enhance collateral mobility, enabling clients to efficiently manage collateral needs in today’s dynamic markets. Based on HQLA^X’s digital ledger, the service provides instant access to security collateral assets via custodians and Central Securities Depositories (CSDs). The collateral is then moved to Clearstream and deposited with Eurex Clearing as margin collateral, streamlining the entire process.

This service, which received regulatory non-objection from BaFin, represents a key milestone in Eurex Clearing’s collateral management strategy and its broader ambitions in digital services. As a trusted financial market infrastructure, Eurex Clearing is proactively preparing for the digital transformation of the financial industry.

A new era of efficiency and flexibility in collateral management 

The partnership with HQLA^X and Clearstream exemplifies how collaboration and Distributed Ledger Technology can drive meaningful progress in modernizing financial market infrastructure.

Danny Hand, Prime Financial Services Product Development at J.P. Morgan: “J.P. Morgan’s participation as the clearing member in the world’s first live DLT-based collateral transaction for cleared derivatives initial margin demonstrates our commitment to innovation and our belief in the transformative power of DLT for collateral management across the industry. This solution has the potential to bring significant benefits to our clients, J.P. Morgan, and the market as it continues to evolve.”

Anja Kleefsman, Head of Treasury & Liquidity Management at PGGM: “PGGM is delighted to be part of this first live DLT-based collateral mobilization transaction initiated to meet our margin obligations at Eurex Clearing. Optimizing our collateral management is a key priority and an element that plays an important role here is the ease of moving collateral. Instant access to and mobilization of collateral assets provided by this DLT-based technology is a major step forward and we welcome this innovation. We’re looking forward to the industry’s further adoption of this solution and leveraging its benefits.”

Source: Eurex