Collateral management solutions for buyside customers

Liquidity Hub Select bundles together the Global Liquidity Hub services aimed at buyside companies who are looking for secure alternatives to the money market.

Triparty repos

Triparty repos are an excellent cash investment tool for corporates, asset managers and insurance companies looking to invest their cash against a guarantee in the shape of securities as they are safer than unsecured cash placements. By investing cash in a triparty repo, those buyside investors will receive securities as collateral which they can then use to meet their margin requirements with a CCP or clearing counterparty.

Buyside investors who want to start using triparty repo can sign the innovative Clearstream Repurchase Conditions (CRC), a legal master agreement for triparty repo transactions with multiple counterparties. Clearstream then performs all the necessary back-office administration including the collection, valuation and management of securities.

GC Pooling Select

Buyside customers can also join the GC Pooling community and benefit from a wide range of standardised collateral baskets as an easy way to get started in triparty repo. The GC Pooling Select service provides buyside customers with a highly secure environment for cash investments via Eurex Clearing as a central counterparty. The service offers the buyside consolidated triparty services by Eurex Repo, Eurex Clearing and Clearstream which cover the full cycle from trading and clearing to collateral management from a single point of access.

Collateralising derivatives

Derivatives are an attractive tool for buyside customers to reduce their exposure to fluctuating exchange rates or prices of commodities. However, buyside treasurers are also under increased regulatory pressure to collateralise and clear these derivative trades. In addition to the Global Liquidity Hub triparty services for cleared derivatives, buyside customers can benefit from bilateral collateral management for uncleared OTC derivatives. This service frees backoffice resources as the Global Liquidity Hub performs operational tasks such as margin call processing, dispute resolution, portfolio reconciliation as well as the setup and maintenance of risk parameters.

Outsourcing backoffice tasks to Clearstream

Buyside treasuries can rely on Clearstream’s full post-trade support for all their triparty repo and OTC derivative transactions, be they cleared or uncleared. All buyside companies need to do to get started in triparty repo is to sign the CRC and then they are ready to benefit from Clearstream’s triparty services for CCP margining or for cash investments in triparty repo and in GC Pooling Select.

Overview of Clearstream services for buyside customers >>