Eurex Clearing has completed a live transaction using DLT for collateral mobilisation. The firm claims in a press release that it is the first in the world to do so. The transaction, executed by JP Morgan in a mobilisation of collateral for Dutch pension fund investor PGGM through the HQLAx platform, marks the solution’s operational debut after it went live a little over a month ago.
The service allows clients to access and utilise securities to fulfil margin requirements no matter where they are located, thus providing “the potential to significantly enhance collateral mobility”. Using the digital ledger by HQLAx, the services provides instant access to security collateral assets via custodians and CSDs, then moves the collateral to Clearstream and deposits it with Eurex Clearing.
As Ledger Insights points out, this provides greater efficiency compared to traditional collateral posting methods that move securities between different custody providers and CSDs. With the HQLAx system, assets are kept with their current custodians and records of ownership changes are generated digitally.
Says Anja Kleefsman, head of Treasury and Liquidity Management at PGGM, “Optimising our collateral management is a key priority and an element that plays an important role here is the ease of moving collateral.”
