Clearstream and Pirum expand automated collateral management

Rick Steves

“By automating collateral management services, we increase interoperability and reduce complexity throughout the entire process for our mutual clients and the whole market.”

Clearstream and Pirum, a securities finance automation provider, have extended their services to offer new collateral connectivity, allowing mutual clients to automate the calculation, matching, submission and validation of collateral requirements and allocations for securities lending, repo and OTC derivative transactions.

Clients can agree on collateral on a real-time basis for increased efficiencies along the value chain, improved settlement rates, and reduced fails and SDR penalties.

Pirum’s CollateralConnect and ExposureConnect services automate in excess of $1.5 trillion of tri-party collateral across more than 50,000 accounts and covering 70+ global clients each day.

Todd Crowther, Head of Collateral Services at Pirum, commented: “We are delighted to extend our connectivity with Clearstream and to work together to help mutual clients achieve improved exposure management and collateral optimisation results. Pirum’s aim is to support the industry’s need to extend interoperability and automation across the wider collateral ecosystem and support market participants’ drive to streamline and centralise margin management across all collateralised products.”

Jean-Robert Wilkin, Banking, Funding & Financing at Clearstream, added: “At Clearstream, providing user-friendly, efficient services supported by best-in-class technology is at the heart of our mission. We are very happy to extend our existing connectivity with Pirum, which contributes perfectly to this goal. By automating collateral management services, we increase interoperability and reduce complexity throughout the entire process for our mutual clients and the whole market.”

Pirum supports clients with MiFID II collateral reporting

Pirum is a UK-based financial services technology vendor, headquartered in the City of London. Pirum was co-founded in 2000 as a securities lending post-trade vendor, specializing initially in the reconciliation of open and pending securities lending trades and billing.

It was in October 2021 that Pirum announced it had enhanced its collateral management service (Collateral Connect) by supporting clients with their MiFID II collateral reporting requirements. This new functionality allows Pirum’s clients to report at scale, in the format and frequency regulators require, to all their counterparts.

Under article 63 of MiFID II regulation, investment firms that hold client financial instruments or client funds are required to send, at least on a quarterly basis, a statement (in a durable medium) of those financial instruments or funds to each client.

Robert Frost, Global Head of Product at Pirum said: “We continue to work closely with our clients to understand the evolving regulatory requirements that they are required to meet. We always look to leverage our extensive data and connectivity, and we have a proven track record of supporting our clients with highly automated solutions.”

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