The two infrastructure firms are dissolving the joint venture on a collateral management solution, founded in 2014.
The split-up of the joint household means that each company takes their product child with them out again. DTCC’s is called the Margin Transit Utility (MTU), while Euroclear’s is named the Collateral Management Utility (CMU).
In identically worded press releases they describe their parting as friendly.
“DTCC and Euroclear maintain a strong working relationship, and the firms will continue to collaborate closely on the development of both MTU and CMU to meet the industry’s needs to manage collateral movements across borders,” they write.
Euroclear keeps the GlobalCollateral entity for itself, and will keep offering CMU through it. Meanwhile, DTCC is integrating its MTU into its Institutional Trade Processing (ITP) business “to provide more holistic support for firms”.
“DTCC and Euroclear are carefully managing this process to ensure the transition is seamless and that there is no impact to clients,” they both promise.