Clearstream and Vermeg Partner to Offer STP Collateral Management Solution for ECMS Launch

Clearstream, a leading European provider of post-trade services which is wholly owned by Deutsche Börse, has partnered with Vermeg, a provider of collateral management solutions for Central Banks, to provide a "unique and fully-fledged" STP collateral management solution connected to the Eurosystem Collateral Management System (ECMS), according to Clearstream's latest statement on its website.

ECMS is being introduced by the European Central Bank (ECB) to unify the management of collateral of national central banks across the Eurozone. As of ECMS launch in April 2024, Clearstream will be the only Eurozone CSD offering comprehensive tri-party collateral services fully integrated into ECMS and for all the Eurozone national central banks.

Clearstream clients will benefit from Vermeg's Easy Collateral solution, taking advantage of its digital monitoring tools, liquidity management and collateral optimization services.

Eurozone banks will have the opportunity to achieve centralized monitoring of the entire ECB collateral pool and consolidate up to 100% of ECB-eligible securities at Clearstream's International Central Securities Depository (ICSD) and Central Securities Depository (CSD). This will offer banks in the region with the best possible operational and cost-efficient set-up to optimise collateral and liquidity positions at the ECB.

"ECMS will standardise collateral management across the Eurozone, advancing liquidity and automation potential. As always, Clearstream's core aim is to provide innovative best-in-class solutions that meet market needs," said Marton Szigeti, Head of Mortgage, Lending and Liquidity Solutions at Clearstream. "We are determined to support our global network of participants throughout the whole process to leverage Clearstream's unique tri-party collateral management capabilities as of day 1 of ECMS. Together with our innovative software partner Vermeg, we are happy to enable the market to directly reap the benefits of ECMS."

"We are delighted to partner with a player such as Clearstream. As the provider of the ECMS platform, Vermeg is pleased to continue to support banks on collateral management and to facilitate their onboarding to the unified platform," said Khaled Ben Abdeljelil, Senior VP/ Product at Vermeg. "Vermeg and Clearstream are creating a unique solution that will enable banks to benefit from the best operational set-up for all types of assets, both marketable assets and credit claims, through a direct connection to ECMS and to Clearstream tri-party collateral services."

Clearstream has been expanding its global reach, including its partnerships with Korea Securities Depository​ and later with KfW​ last month.