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Eurex joins Clearstream & VERMEG partnership to expand use of collateral of its leading pan-European cash-driven liquidity pool

Release date: 15 May 2024 | Eurex

Eurex joins Clearstream & VERMEG partnership to expand use of collateral of its leading pan-European cash-driven liquidity pool

  • Eurex joins partnership with software provider VERMEG to offer clients a unique collateral management solution connecting the Eurosystem Collateral Management System (ECMS), Clearstream’s Triparty services and Eurex’s GC Pooling.
  • This partnership will provide new opportunities for collateral optimization via the re-use of collateral to increase clients’ Central Bank Credit Line within the new ECMS.

Eurex, Europe’s leading derivatives exchange, and VERMEG, the technology provider of the Eurosystem Collateral Management System (ECMS), enter a partnership which will enable banks with new opportunities to further optimize collateral re-use.  

Leading pan-European cash-driven liquidity pool 

GC Pooling is the leading pan-European cash-driven liquidity pool for secured funding with more than 160 buy and sell side firms. It ensures straight-through processing with automated connectivity to Eurex Clearing as a central counterparty and real time collateral management services provided by Deutsche Börse's post-trade business Clearstream. 

Collateral re-use opportunities and central bank liquidity 

Implementation of ECMS in November 2024 will provide new opportunities for collateral optimization and mobilization in the Eurozone through GC Pooling re-use. This includes seamless refinancing with national central banks, collateralization of CCP margin, and collateralization of bilateral margin. 

The ECB is using the ECMS to harmonize the collateral management practices of national central banks across the Eurozone. Leveraging VERMEG’s collateral solution, Eurex’s clients will benefit from enhanced liquidity management and collateral optimization. VERMEG’s Easy Collateral is a digital and cloud-based plug and play platform to monitor, optimize and process collateral operations. The increased efficiency in collateral operations is also enhanced by the STP Triparty offer by Clearstream & VERMEG.  

Close collaboration between Eurex, Clearstream and VERMEG 

Frank Gast
Zoom
Frank Gast, Member of the Management Board of Eurex Repo: “A unified approach to Eurosystem Collateral Management will ultimately standardize collateral management across the Eurozone, advancing liquidity, market reliability and automation potential. Our ambition is to provide innovative and best-in-class solutions to the markets and our clients. With the help of this new partnership, we will be able to realize the potential of the ECMS for all market participants and emphasize the importance of access to central bank money. Time is now for clients to prepare implementation of ECMS and to benefit from new collateral optimization opportunities.” 

Michael Carignano, VERMEG
Zoom
Michael Cariginano, Head of Markets Innovation at VERMEG: “We are thrilled to expand our longstanding partnership with Clearstream to include a key player like Eurex. As the foremost provider of Collateral Management solutions for Central Banks, VERMEG is committed to empowering banks to seamlessly connect with market infrastructure, including Central Banks, Triparty Agents, and CCPs. Together, VERMEG, Clearstream, and Eurex are forging a groundbreaking solution that will allow banks to optimize collateral allocation and leverage the most efficient operational setup. Through direct connectivity to ECMS and Clearstream, coupled with full access to collateral re-use capabilities facilitated by GC Pooling at Eurex, banks will enjoy unparalleled efficiency and flexibility in managing their collateral assets.” 


About Eurex 

Eurex is the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk.  

About VERMEG 

VERMEG is a specialized software house covering three main market segments in financial services: Collateral management & Asset Servicing, Regulatory reporting and Digital transformation and is the global leading provider of collateral management solutions for Central Banks. 

VERMEG’s solutions and Innovation are designed to address the transformation challenges of the Market-Infrastructure industry. For more information, please visit: EASY Collateral by VERMEG. 

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