State Street Collateral+ Connects to MTU
State Street Corporation announced that its Collateral + business is operational with DTCC’s Margin Transit Utility (MTU), which has been designed for simplifying the transfer of collateral among market participants.
“We expect this functionally to be essential for our ability to improve operational efficiency and remove unnecessary complexity so that overall risk is mitigated and collateral is ultimately released quicker.”
By leveraging MTU, State Street’s Collateral+ business will now be able to more efficiently validate, enrich, settle, report and monitor third party collateral while easily connecting to and sharing information with multiple counterparties on behalf of its clients.
MTU service helps reduce operational risk by standardizing and automating the margin process from the point of agreement through to settlement. It also helps eliminate the need of using faxes and emails for processing margin and settlement activity.
“We continue to focus on making key investments in all areas of the firm’s Collateral Optimization Group, and given the recent and continuing market volatility, coupled with the final phases of uncleared margin rules (UMR) for over-the counter (OTC) derivatives, an increasing number of our clients are looking to replace manual processes with new tools that focus on automation such as DTCC’s MTU,” said Staffan Ahlner, global head of Collateral+ for State Street. “We expect this functionally to be essential for our ability to improve operational efficiency and remove unnecessary complexity so that overall risk is mitigated and collateral is ultimately released quicker.”
Source: State Street
Phase 5 of the uncleared margin rules (UMR) took effect from September 2021.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.
Traders on EQONEX will be able to use US dollars, USD Coin and Bitcoin as margin for derivatives trading.
Smaller entities come into scope in phase five of the uncleared margin regulations on September 1.