Eurex has partnered with software firm VERMEG to offer a collateral management solution, with the aim to “provide new opportunities for collateral optimisation via the re-use of collateral”. This should result in an increase in clients’ central bank credit line in time for the implementation of the new Eurosystem Collateral Management System (ECMS) in November this year.

The new solution will connect the ECMS, Clearstream’s triparty services, and Eurex’s general collateral (GC) pooling. Deutsche Börse reveals in a press release that the ECMS is expected to enhance collateral mobilisation in the Eurozone through GC pooling re-use, including refinancing with national central banks, and the collaterisation of CCP margin and bilateral margin.

Upon implementation, the ECMS will also be used by the European Central Bank (ECB) for harmonising collateral management practices of national central banks across the Eurozone.