Clearstream Introduces Collateral Mapper to Enhance Collateral Management

Monday, 27/03/2023 | 12:26 GMT by Damian Chmiel
  • Collateral Mapper delivers real-time data on collateral portfolios.
  • The solution enables increased transaction execution volumes.
Clearstream Sees Upticks in Global Securities Financing, CSD Services in April
Clearstream's building

Clearstream, a post-trade services provider owned by the Deutsche Börse Group, has unveiled its latest innovation, the Collateral Mapper, a data-driven solution designed to optimize collateral management.

Clearstream to Customise Equity Collateral Utilisation

The Collateral Mapper provides clients with an automated, comprehensive view of their collateral positions, enabling well-informed decision-making. By presenting complex collateral usage data in an intuitive dashboard, it evaluates an equity portfolio's collateral potential and identifies spare capacity for inventory rebalancing toward equity, revealing opportunities to free up high-quality assets. The Collateral Mapper's automatic updates based on end-of-day data eliminate errors and manual intervention.

According to Clearstrem, collateral management relied traditionally on extensive manual processes, leading to inefficiencies, high costs, and errors. Market participants are constantly seeking ways to streamline, reduce errors, and enhance efficiency in the process.

Priya Sharma, Clearstream's Head of Data & Connectivity, noted that the current interest rate environment has prompted a renewed focus on collateral management.

"We at Clearstream combine the power of high-quality data and pre-emptive analytics to provide clients with innovative and reliable insights. With the Collateral Mapper, we enable them to maximize their collateral pool across different asset classes. Today, more than 10 per cent of triparty repo collateralisation is taking place in equities, bringing potential to optimise eligible inventory," Sharma added.

Clients can access the Collateral Mapper as a self-serve tool via Clearstream's Xact platform, with a free 3-month trial period.

Optimizing collateral with Clearstream's Collateral Mapper

Marton Szigeti, Clearstream's Head of Collateral, Lending and Liquidity Solutions, emphasized that providing clients with dependable, scalable, and cutting-edge solutions to reduce frictional trading costs through automation and transparency is at the core of their collateral management strategy.

"We at Clearstream are the innovation partner of choice in digital post-trading, an expertise that we are bringing to bear in the transformation of the collateral management space," Szigeti commented.

Another Collateral Management Move after OSCAR

Clearstream launched its own collateral management tool in June 2022 with the collaboration of Intelli-Select, a Brussels-based fintech company. The Own Selection Criteria with Automated Reasoning, or OSCAR, is the market's premier collateral management solution, distinctively integrating multiple artificial intelligence methodologies.

Samuel Riley, the Head of Investor Services & Financing at Clearstream, stated that OSCAR has the potential to reduce the time needed for establishing and negotiating a collateral bank from weeks to mere hours.

"Like this, Clearstream provides an enormous relief for client operations who can create individual, yet machine-readable collateral baskets to maximize the value of their business's collateral," Riley then stated.

In a related development, Clearstream recently joined forces with FNZ, a prominent global wealth management platform. This partnership aims to boost transparency throughout the asset management sector in the UK and Europe.

Deutsche Börse Net Profit Jumps in 2022

As part of the Deutsche Börse Group, Clearstream helped boost the institution's net income, which rose by 24% in 2022 to €1.6 billion. The company's net revenue reached €4,338 million, which is a significant increase from the €3,509 million reported in 2021. EBITDA experienced a surge, going from €2,043 million to €2,525 million, while the final net income climbed to €1,563 million from the previous year's €1,264 million. All of these key indicators experienced a 24% year-over-year growth rate.

In 2023, the Group anticipates sustaining its current growth trajectory, projecting net revenue to rise within the range of €4.5-4.7 billion and EBITDA to reach between €2.6-2.8 billion. Concurrently, Deutsche Börse proposes a 13% increase in dividend payments , amounting to €3.60 per individual share.

In the meantime, Crypto Finance AG, a crypto startup and a subsidiary of Deutsche Börse Group, has revealed a partnership with Apex Group. The alliance aims to offer institutional-grade digital assets products.

Clearstream, a post-trade services provider owned by the Deutsche Börse Group, has unveiled its latest innovation, the Collateral Mapper, a data-driven solution designed to optimize collateral management.

Clearstream to Customise Equity Collateral Utilisation

The Collateral Mapper provides clients with an automated, comprehensive view of their collateral positions, enabling well-informed decision-making. By presenting complex collateral usage data in an intuitive dashboard, it evaluates an equity portfolio's collateral potential and identifies spare capacity for inventory rebalancing toward equity, revealing opportunities to free up high-quality assets. The Collateral Mapper's automatic updates based on end-of-day data eliminate errors and manual intervention.

According to Clearstrem, collateral management relied traditionally on extensive manual processes, leading to inefficiencies, high costs, and errors. Market participants are constantly seeking ways to streamline, reduce errors, and enhance efficiency in the process.

Priya Sharma, Clearstream's Head of Data & Connectivity, noted that the current interest rate environment has prompted a renewed focus on collateral management.

"We at Clearstream combine the power of high-quality data and pre-emptive analytics to provide clients with innovative and reliable insights. With the Collateral Mapper, we enable them to maximize their collateral pool across different asset classes. Today, more than 10 per cent of triparty repo collateralisation is taking place in equities, bringing potential to optimise eligible inventory," Sharma added.

Clients can access the Collateral Mapper as a self-serve tool via Clearstream's Xact platform, with a free 3-month trial period.

Optimizing collateral with Clearstream's Collateral Mapper

Marton Szigeti, Clearstream's Head of Collateral, Lending and Liquidity Solutions, emphasized that providing clients with dependable, scalable, and cutting-edge solutions to reduce frictional trading costs through automation and transparency is at the core of their collateral management strategy.

"We at Clearstream are the innovation partner of choice in digital post-trading, an expertise that we are bringing to bear in the transformation of the collateral management space," Szigeti commented.

Another Collateral Management Move after OSCAR

Clearstream launched its own collateral management tool in June 2022 with the collaboration of Intelli-Select, a Brussels-based fintech company. The Own Selection Criteria with Automated Reasoning, or OSCAR, is the market's premier collateral management solution, distinctively integrating multiple artificial intelligence methodologies.

Samuel Riley, the Head of Investor Services & Financing at Clearstream, stated that OSCAR has the potential to reduce the time needed for establishing and negotiating a collateral bank from weeks to mere hours.

"Like this, Clearstream provides an enormous relief for client operations who can create individual, yet machine-readable collateral baskets to maximize the value of their business's collateral," Riley then stated.

In a related development, Clearstream recently joined forces with FNZ, a prominent global wealth management platform. This partnership aims to boost transparency throughout the asset management sector in the UK and Europe.

Deutsche Börse Net Profit Jumps in 2022

As part of the Deutsche Börse Group, Clearstream helped boost the institution's net income, which rose by 24% in 2022 to €1.6 billion. The company's net revenue reached €4,338 million, which is a significant increase from the €3,509 million reported in 2021. EBITDA experienced a surge, going from €2,043 million to €2,525 million, while the final net income climbed to €1,563 million from the previous year's €1,264 million. All of these key indicators experienced a 24% year-over-year growth rate.

In 2023, the Group anticipates sustaining its current growth trajectory, projecting net revenue to rise within the range of €4.5-4.7 billion and EBITDA to reach between €2.6-2.8 billion. Concurrently, Deutsche Börse proposes a 13% increase in dividend payments , amounting to €3.60 per individual share.

In the meantime, Crypto Finance AG, a crypto startup and a subsidiary of Deutsche Börse Group, has revealed a partnership with Apex Group. The alliance aims to offer institutional-grade digital assets products.

About the Author: Damian Chmiel
Damian Chmiel
  • 2071 Articles
  • 57 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 2071 Articles
  • 57 Followers

More from the Author

Institutional FX

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}