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Clearstream and Vermeg team up on STP collateral management system

Clearstream and software provider Vermeg are joining forces to provide a unique and fully-fledged STP collateral management solution connected to the Eurosystem Collateral Management System (ECMS).

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The European Central Bank (ECB) is introducing ECMS 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.

Leveraging Vermeg’s Easy Collateral solution, Clearstream clients will benefit from a best-in-class digital monitoring tool, enhanced liquidity management and unparalleled collateral optimisation. Eurozone banks will have the opportunity for centralised monitoring of the overall ECB collateral pool and consolidation of up to 100 per cent of ECB-eligible securities at Clearstream’s ICSD and CSDs. This will provide them with the best possible operational and cost-efficient set-up to optimise collateral and liquidity positions at the ECB.

Marton Szigeti, Head of Collateral, Lending and Liquidity Solutions at Clearstream, says: “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. 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.”

Khaled Ben Abdeljelil, Senior VP/ Product at Vermeg, added: “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. 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.”

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