Northern Trust To Use GlobalCollateral's Margin Settlement Service
It joins State Street in a pilot program to help increase efficiency and transparency.
Northern Trust will be implementing the margin settlement system developed by GlobalCollateral, a joint venture between the Depository Trust & Clearing Corporation (DTCC) and Euroclear.
The firm joins State Street, which announced its participation in early July, in a pilot for GlobalCollateral's Margin Settlement Messaging Service.
The service aims to create efficiencies by improving risk management processes and adding transparency, said Pete Cherecwich, Northern Trust's head of corporate and institutional services for the Americas, in a statement.
"We believe that one of the keys to excellent client service is to take advantage of new and innovative technologies, especially those that not only create operational efficiencies and improved risk management, but can also enable us to provide increased transparency to our clients," Cherecwich said.
With the messaging service, Northern Trust hopes to streamline its margin call process and automate its collateral settlement tracking as volumes of collateral start to increase.
State Street, Northern Trust and other firms implementing GlobalCollateral's margin settlement system expect that collateral volumes will increase so it is important to have a process that will handle the amount of work that has to be done quickly. The service is ready for client onboarding, GlobalCollateral said, and is expected to go live in the first half of 2017.
The service takes the place of a largely manual process that often requires a constant back and forth between all parties involved. GlobalCollateral's messaging service, running on the back of its Margin Transit Utility (MTU), automates the full operation from margin call to settlement.
Northern Trust could offer the Margin Transit Utility service to clients if there is enough demand for it. Implementation will depend on customer feedback.
After the pilot, Northern Trust and other institutions involved in the program will be able to use the MTU service to track collateral movement with settlement instructions to confirm success or failure.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
The total portfolio approach gains momentum: Building the right tech foundation for success
The rationale for the TPA, and the crucial role technology plays in enabling such an approach
Google, CME say they’ve proved cloud can support HFT—now what?
After demonstrating in September that ultra-low-latency trading can be facilitated in the cloud, the exchange and tech giant are hoping to see barriers to entry come down.
Institutional priorities in multi-asset investing
Private markets, broader exposures and the race for integration
BlackRock and AccessFintech partner, LSEG collabs with OpenAI, Apex launches Pisces service, and more
The Waters Cooler: CJC launches MDC service, Centreon secures Sixth Street investment, UK bond CT update, and more in this week’s news roundup.
TCB Data-Broadhead pairing highlights challenges of market data management
Waters Wrap: The vendors are hoping that blending TCB’s reporting infrastructure with Broadhead’s DLT-backed digital contract and auditing engine will be the cure for data rights management.
Robeco tests credit tool built in Bloomberg’s Python platform
This follows the asset manager’s participation in Bloomberg’s Code Crunch hackathon in Singapore, alongside other firms including LGT Investment Bank and university students.
FCA eyes equities tape, OpenAI and Capco team up, prediction markets gain steam, and more
The Waters Cooler: More tokenization, Ediphy lawsuit updates, Rimes teams up with Databricks, and more in this week’s news roundup.
Buy-side data heads push being on ‘right side’ of GenAI
Data heads at Man Group and Systematica Investments explain how GenAI has transformed the quant research process.