The new portal will enable customers of the Liquidity Alliance members to benefit from significant enhancements which will further increase their collateral efficiency / Liquidity Alliance member Cetip from Brazil will act as a pilot for the entire Liquidity Alliance and has scheduled the implementation for November 2014 / ASX (Australia), Clearstream (Luxembourg and Germany), Iberclear (Spain) and Strate (South Africa) are part of the subsequent roll-outs
The Liquidity Alliance, the global association of market infrastructures delivering collateral management services to their markets through a common platform, has announced the implementation of a new customer connectivity solution. The new interface was developed on the basis of experience and feedback received from clients using the underlying collateral management solution since its introduction in 2011.
The ongoing need for market participants to adopt their collateral management to new regulatory rules and changing business models led the Liquidity Alliance to significantly upgrade its customer connectivity solution. The new front-end will deliver enhanced transparency and further advanced management tools for the collateral transactions included in the services of the Liquidity Alliance members. In addition, there will be much more flexibility to dynamically adopt the solution to new customer needs surfacing over time.
Having been the first entity to adopt the Liquidity Alliance collateral management solution back in 2011, Cetip, the Brazilian central securities depository, is currently preparing the launch of the new connectivity interface in November 2014 as a pilot for the entire Liquidity Alliance. The other Liquidity Alliance members ASX (Australia), Clearstream (Luxembourg and Germany), Iberclear (Spain) and Strate (South Africa) are also part of the subsequent roll-outs which will bring the benefits to customers across the globe from 2015 onwards.
Fabio Zenaro, Products and Business Executive Manager at Cetip, said: “We led the way by implementing the system in 2011 and we have developed with Clearstream a pioneering solution that is a blueprint for other market infrastructures across the globe. With over three years of experience in operating our collateral service for Brazil, we consider very important to continue bringing innovation to our clients.”
Stefan Lepp, Member of the Executive Board and Head of Global Securities Financing at Clearstream, said: “Being part of the Liquidity Alliance with its global reach has enabled us to understand customer requirements even better and to define superior solutions to service their needs together with our partners. As the technical solution provider, Clearstream is pleased to deliver the next generation of customer connectivity which will bring benefits to all current and future Liquidity Alliance members and their clients.”
The Liquidity Alliance was formed in 2013 by five market infrastructures:
* ASX, a financial infrastructure in Australia;
* Cetip, a central securities depository specialising in OTC derivatives, in Brazil;
* Clearstream, the German central securities depository and Luxembourg-based international central securities depository;
* Iberclear, the central securities depository in Spain;
* Strate, the central securities depository in South Africa.
Associated members of the Liquidity Alliance are:
* CDS, the central securities depository in Canada;
* SGX, a financial infrastructure in Singapore;
* VPS, the central securities depository in Norway.
Each of the Liquidity Alliance members are financial market infrastructures which are cooperating and developing collateral management solutions to address the growing present and future global needs for more collateral. Their main mission is to share information and ideas in order to create opportunities for their customers and for the wider industry while promoting best-practice in liquidity and collateral management. The Liquidity Alliance will encourage greater pan-industry partnership and cooperation through promotion of expert insight, ideas and research to be shared with industry peers, media and interested parties through communication activities such as conferences and events.
