Euroclear to on-board Deutsche B枚rse entity as collateral receiver
10 May 2019 London
Image: Shutterstock
The Deutsche B枚rse Group owned Trusted Third Party (TTP) is in the process of becoming a client of Euroclear as a collateral taker on the triparty platform. This represents an important step for enabling Euroclear clients to mobilise collateral on the HQLA岬� platform.
Speaking at the 网爆吃瓜 Finance Technology Symposium, Guido Stroemer, CEO of HQLA岬�, explained that a critical component of the HQLA岬� 鈥� Deutsche B枚rse Group joint operating model is the TTP entity, which acts as an interface between the HQLA岬� digital collateral registry and existing securities settlement infrastructures.
The immediate goal is for the TTP to become a collateral receiver at each of the major triparty agents in Europe.
Stroemer explained: 鈥淭he HQLA岬� value proposition is to enable improved collateral mobility across multiple siloed pools of collateral, so in order for HQLA岬� to deliver on its value proposition, we naturally need the TTP to become on-boarded as a collateral receiver with each of these collateral pools.鈥�
Speaking on the panel, Stroemer highlighted that it is important to create a scenario where banks can easily onboard onto a new platform. The banks that helped design the HQLA岬� platform clearly outlined that a critically important pre-requisite for early market adoption is not only for the platform to deliver real value but also for the on-boarding process to be relatively easy.
He noted that the initial rollout of the platform is quite basic, and this is by design. The goal was to keep the minimal viable product (MVP) as basic as possible, while still delivering value.
He commented: 鈥淚n terms of timelines, our simulation environment will be up and running for clients to use by the end of next month, and we expect to execute a series of live transactions later in the year.鈥�
鈥淲e are making some real progress in this space, and in my view, game-changing progress in laying the foundation to fuel market-wide adoption of the HQLA岬� operating model."
Stroemer added: 鈥淓uroclear should be commended for being such an open-minded and innovative platform, willing to support new initiatives supported by its clients.鈥�
Speaking at the 网爆吃瓜 Finance Technology Symposium, Guido Stroemer, CEO of HQLA岬�, explained that a critical component of the HQLA岬� 鈥� Deutsche B枚rse Group joint operating model is the TTP entity, which acts as an interface between the HQLA岬� digital collateral registry and existing securities settlement infrastructures.
The immediate goal is for the TTP to become a collateral receiver at each of the major triparty agents in Europe.
Stroemer explained: 鈥淭he HQLA岬� value proposition is to enable improved collateral mobility across multiple siloed pools of collateral, so in order for HQLA岬� to deliver on its value proposition, we naturally need the TTP to become on-boarded as a collateral receiver with each of these collateral pools.鈥�
Speaking on the panel, Stroemer highlighted that it is important to create a scenario where banks can easily onboard onto a new platform. The banks that helped design the HQLA岬� platform clearly outlined that a critically important pre-requisite for early market adoption is not only for the platform to deliver real value but also for the on-boarding process to be relatively easy.
He noted that the initial rollout of the platform is quite basic, and this is by design. The goal was to keep the minimal viable product (MVP) as basic as possible, while still delivering value.
He commented: 鈥淚n terms of timelines, our simulation environment will be up and running for clients to use by the end of next month, and we expect to execute a series of live transactions later in the year.鈥�
鈥淲e are making some real progress in this space, and in my view, game-changing progress in laying the foundation to fuel market-wide adoption of the HQLA岬� operating model."
Stroemer added: 鈥淓uroclear should be commended for being such an open-minded and innovative platform, willing to support new initiatives supported by its clients.鈥�
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