Eurex Joins Clearstream & VERMEG Partnership to Optimize Collateral Re-Use for Banks

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.

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.

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.

Frank Gast Frank Gast, Member of the Management Board of Eurex Repo, commented: "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, Head of Markets Innovation at VERMEG, stated: "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."