Clearstream Launches Collateral Mapper to Optimize Collateral Management

Following the launch of a STP collateral management solution​ connected to the Eurosystem Collateral Management System (ECMS) in partnership with a specialized financial services software house Vermeg, Clearstream, a leading European provider of post-trade services which is wholly owned by Deutsche Börse, has launched the Collateral Mapper, a new data-based solution to optimize collateral management.

Clearstream explained in the latest announcement: "Collateral Mapper allows users to make well-informed decisions by providing them with an automated and complete view of their collateral positions. It summarises complex sets of reports on collateral usage in an intuitive dashboard and evaluates the collateral potential of an equity portfolio. Furthermore, it identifies the spare capacity in rebalancing an inventory towards equity thereby highlighting the possibility to free up higher quality assets."

Furthermore, the new tool eliminates errors by automatically updating based on end-of-day data without requiring any manual intervention, the company noted.

"Due to the current changing interest rate climate, market participants are placing a renewed focus on collateral management. We at Clearstream combine the power of high-quality data and pre-emptive analytics to provide clients with innovative and reliable insights," said Priya Sharma, Head of Data & Connectivity at Clearstream. "With the Collateral Mapper, we enable them to maximise their collateral pool across different asset classes. Today, more than 10 per cent of triparty repo collateralisation is taking place in equities, bringing potential to optimise eligible inventory."

"Providing our clients with reliable and scalable state-of-the-art solutions that reduce the frictional costs of trading through transparency and automation is core to our collateral management strategy," added Marton Szigeti, Head of Collateral, Lending and Liquidity Solutions at Clearstream."We at Clearstream are the innovation partner of choice in digital post-trading, an expertise that we are bringing to bear in the transformation of the collateral management space."