Brown Brothers Harriman & Co. (BBH) today unveiled the industry’s first STP interface to CME Clearing’s Collateral Connect messaging protocol. The BBH Cleared Derivatives Collateral Management platform (BBH-CDCM) enables participants to optimize the customer collateral selection process and efficiently process collateral transfers to and from CME Clearing. This solution expands BBH’s established collateral management services for Futures Commission Merchants (FCMs), asset managers, and other market participants.
Together with BBH’s Settlement Banking service, BBH-CDCM provides FCMs with a comprehensive collateral management outsource solution that supports seamless collateral movements across the broad spectrum of FCMs, central clearing counterparties, and institutional end user market participants.
“This launch is an important next step as we continue to enhance client offerings,” said Frank Perrone, Head of the BBH FCM and Derivatives Settlement Banking Group. “Now more than ever, our FCM clients have expressed a need for new solutions to help them navigate new regulations and changing market dynamics, all while being responsive to increased demand for high-quality collateral, reduced costs and improved risk management controls. BBH-CDCM will help our FCM clients remain competitive with cost effective technology options that offer STP, aid in risk management, and accommodate evolving regulatory reporting practices.” Sunil Cutinho, President, CME Clearing, said, “We are pleased to work with BBH to provide greater collateral efficiencies to the marketplace. BBH-CDCM provides access to CME’s Collateral Connect API, which is available for all CME Clearing and CME Clearing Europe clearing firms and their custody banks, supports continued automation of collateral transaction processing, and makes it easier and faster for FCMs to substitute collateral for their clients.”
