CSDs hold hands for collateral crunch
17 January 2013 Frankfurt
Image: Shutterstock
Central securities depositories (CSDs) including ASX (Australia), Cetip (Brazil), Clearstream (Frankfurt/Luxembourg), Iberclear (Spain) and Strate (South Africa) have all teamed up and are encouraging other regions to join them in extending a global collateral solution.
The five initial members of the Liquidity Alliance will exchange information, identify common needs and extend global collateral solutions while encouraging the development of research, with participants meeting each quarter to discuss commercial opportunities in collateral management.
Peter Hiom, deputy CEO of ASX Group, said: 鈥淒ifferent markets have different needs and a truly global liquidity management solution needs to factor in these differences while still catering to the globally operating banks. It is our objective that the Liquidity Alliance will deliver an efficient value proposition for the worldwide industry enriched by local know-how and experience.鈥�
Monica Singer, CEO of Strate, said that CSDs, as some other national market infrastructures, have traditionally been behind-the-scenes organisations that quietly and efficiently serve their markets. 鈥淏ut now the time is right to leverage their central position and expertise in a more proactive way to differentiate Liquidity Alliance members from their competitors.鈥�
Wagner Anacleto, COO Cetip, said that as the regulatory environment in Brazil continues to evolve, access to global collateral will become crucial to the further development of local financial markets.
He added that his organisation鈥檚 experience with Clearstream demonstrates that the practical aims of the Liquidity Alliance are not only feasible but live and benefiting his market.
The five initial members of the Liquidity Alliance will exchange information, identify common needs and extend global collateral solutions while encouraging the development of research, with participants meeting each quarter to discuss commercial opportunities in collateral management.
Peter Hiom, deputy CEO of ASX Group, said: 鈥淒ifferent markets have different needs and a truly global liquidity management solution needs to factor in these differences while still catering to the globally operating banks. It is our objective that the Liquidity Alliance will deliver an efficient value proposition for the worldwide industry enriched by local know-how and experience.鈥�
Monica Singer, CEO of Strate, said that CSDs, as some other national market infrastructures, have traditionally been behind-the-scenes organisations that quietly and efficiently serve their markets. 鈥淏ut now the time is right to leverage their central position and expertise in a more proactive way to differentiate Liquidity Alliance members from their competitors.鈥�
Wagner Anacleto, COO Cetip, said that as the regulatory environment in Brazil continues to evolve, access to global collateral will become crucial to the further development of local financial markets.
He added that his organisation鈥檚 experience with Clearstream demonstrates that the practical aims of the Liquidity Alliance are not only feasible but live and benefiting his market.
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