Clearstream has inked a deal with BME-owned central securities depository Iberclear, that will see the pair develop a tri-party collateral management service for Spain by 2013.
Iberclear will outsource the allocation, optimisation and substitution of domestic collateral to Clearstream's collateral management system, the Global Liquidity Hub.
The service is being launched ahead of a multitude of regulatory changes that will require financial and non-financial institutions to improve their liquidity and collateral management efficiency.
It will target the collateralisation of exposures in the Spanish market of Iberclear clients, initially covering those resulting from domestic repo transactions.
Clearsream says that through the service Iberclear clients will be in a position to handle their domestic collateral holdings and exposures more efficiently while keeping them in the domestic Spanish environment.
The deal makes Spain the first European market to tap Clearstream's Liquidity Hub service but the Deutsche Börse unit has been busy signing up partners around the world, securing deals in Brazil, Australia, South Africa and Canada recently.
Jeffrey Tessler, CEO, Clearstream, says: "It's a strategic priority of Deutsche Börse Group to make global markets more robust through risk and liquidity management solutions such as Clearstream's collateral management outsourcing service. Collateral has become a very scarce resource and sourcing good quality collateral is increasingly expensive - we can help managing collateral holdings and exposures much more efficiently."