Euroclear enters a partnership with Transcend with the aim to introduce a new joint collateral optimisation service. The service will bring together Euroclear’s industry-leading collateral management infrastructure and data with Transcend’s best-in-class optimisation platform to address clients’ collateral optimisation needs.
The collaboration is announced just before the 2024 Collateral Conference, Euroclear’s premier event for the collateral management community. The new service is expected to launch in Q1 of 2025.
Transcend is a leading 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.
Source: Euroclear
Pirum Extends Integration With Euroclear’s Triparty Collateral Management Platform
Pirum, the trusted technology partner for securities finance automation and collateral management, announced today the extension of its CollateralConnect service integration with Euroclear’s triparty collateral management platform to support mutual clients’ collateral optimisation needs.
The extended connectivity between Pirum and Euroclear allows mutual clients to direct collateral allocations to Euroclear’s triparty collateral management environment. To determine their optimal collateral allocation, mutual clients can use their own or a third-party optimisation algorithm and their ‘sources and uses’ portfolio data held by Pirum. This provides firms with intelligent, straight-through processing (STP) functionality to streamline intra-day margining, automate directed collateral coverage and drive efficient collateral usage and mobilisation.
The CollateralConnect service offered by Pirum delivers a real-time and automated solution for efficient management and optimisation of collateral, funding and liquidity. The service provides accurate and comprehensive data that enables highly complex, multi-objective optimisation outcomes, including by mitigating risk and maximising financial resource efficiencies.
Marije Verhelst, Head of Product Strategy and Development Collateral Management and Securities Lending at Euroclear said: “We fully support initiatives that make collateral flows more efficient and optimal for our clients and the industry. Extending our connectivity and enhancing our collaboration with Pirum provides a great opportunity for us to deliver even more value to our mutual clients.”
Todd Crowther, Head of Corporate Development and Collateral Services at Pirum said: “We are excited to extend our collaboration with Euroclear to support mutual clients’ demand for enhanced optimisation. Connecting Euroclear’s triparty platform to our CollateralConnect service addresses industry participants’ need to drive better business performance through seamless connectivity, interoperability and intelligent, data-driven automation.”
Source: Pirum
