How are CCPs helping to optimise collateral management and support liquidity in a high-interest rate environment? And what benefits does the connection between LCH RepoClear’s GCPlus and the Euroclear two-party service unlock? To find out, watch Olivier Nin, Head of Product and Head of First Line Risk LCH RepoClear, LCH SA, LSEG.
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In a high interest rate environment and while the end of quantitative ising fuel the return of connect to the markets, liquidity management and co optimization are at the very heart of financial institution. Concern in this environment, operation become complex and cost increase the CCP because of its role of central counterparty as a role to play to facilitate liquidity access, simplify collateral management, and ultimately help member optimizing their resources. RI Clear via its unified izing and general collateral service allows member to navigate between their different constraint supported by the 1.2 trillion Euro liquidity cleared daily by the CCP If trading izing in a low member to manage their inventory precisely and raise cash against a range of government and supernational securities. Our disapproved solution offers another efficient cash management tools widening to more than 5,000 securities. The scope of eligible collateral, including the ability to benefit from sustainable financing via our green bond baskets, helping members align with the sustainability objectives. Collateral will also be optimized in different ways by leveraging on an integrated collateral management system. Members will facilitate the allocation and substitution of security through the days, hence accommodating their trading needs. By the connection between G Plus and the Euroclear. Three party service members will be able to transfer collateral from the clear space to the UNCLEARED space, creating one gigantic collateral program, and by Trading Country Baskets member will pilot the exposure switching between special and GC securities. Additionally, because member are less focused on cost and operational efficiency, we also worked on making it easier for them to achieve margin optimization by being active on single izing and g plus while leveraging on streamline unified operational processes. Finally, the development by L-C-H-F-A suite of digital tools is this member's ability to anticipate the margin requirements, follows the status of the settlement along the lifecycle of the trades, and ultimately increase their ability to optimize their resources.
