Collateral Management - How market infrastructures can address the challenges News


Ted Leveroni, DTCC executive director of strategy and buy side relations, discusses the latest developments in the world of collateral management, in an interview conducted by Risk. In a time of unprecedented change and unparalleled challenges in the industry, among the topics on the table were how infrastructure providers can partner to address issues around clearing, collateral mobility and margin calls.

About Collateral Management

On September 2014, DTCC and Euroclear announced the creation of a joint venture that will leverage both companies’ expertise, technology and franchises, focusing on collateral processing. The newly-created company, DTCC-Euroclear Global Collateral Ltd, will be domiciled in the United Kingdom, and its operations are subject to regulatory approvals.

The joint venture will bring to market a Margin Transit Utility (MTU) and Collateral Management Utility (CMU). The MTU will provide straight-through processing of margin obligation settlement, leveraging current DTCC infrastructure, as well as additional infrastructure currently in development in coordination with the industry. Industry testing of the MTU is scheduled to begin in mid-2015. The CMU will address the global challenge of sub-optimal collateral allocation and mobility, through utilizing Euroclear’s market-leading Collateral Highway, and will follow the launch of the MTU.

For more information on DTCC's Collateral management initiatives, please click here


Ted Leveroni, DTCC executive director of strategy and buy side relations