Press Releases

Jan 14, 2020 • Press Releases

Update on DTCC-Euroclear GlobalCollateral Joint Venture

Since DTCC-Euroclear GlobalCollateral was formed in 2014, we have been very pleased with industry receptiveness to the Margin Transit Utility (MTU) and the Collateral Management Utility (CMU). The market is in need of collateral management solutions that streamline and automate processes while enabling firms to meet emerging regulations. However, as the market has continued to evolve, we regularly assess the most efficient way to deliver the highest-quality services to support clients. As a result, DTCC and Euroclear have jointly decided to separate the two products and dissolve the joint venture, DTCC-Euroclear GlobalCollateral operating entity, effective March 10, 2020. DTCC and Euroclear are carefully managing this process to ensure the transition is seamless and that there is no impact to clients.

DTCC will integrate MTU into its Institutional Trade Processing (ITP) business to provide more holistic support for firms, and Euroclear will become the sole owner of the GlobalCollateral entity offering the CMU. DTCC and Euroclear maintain a strong working relationship, and the firms will continue to collaborate closely on the development of both MTU and CMU to meet the industry’s needs to manage collateral movements across borders.

For information on DTCC’s Margin Transit Utility (MTU) please visit dtcc.com/collateral-management.

For information on Euroclear’s Collateral Management Utility (CMU), please visit www.euroclear.com/services/en/collateral-management.html

About DTCC

With over 45 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 16 countries, DTCC, through its subsidiaries, automates, centralizes and standardizes the processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management, data reporting and information services across asset classes, bringing increased security and soundness to financial markets. In 2018, DTCC’s subsidiaries processed securities transactions valued at more than U.S. $1.85 quadrillion. Its depository provides custody and asset servicing for securities issues from 170 countries and territories valued at U.S. $52.2 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes over 14 billion messages annually. To learn more, visit us at www.dtcc.com or connect with us on LinkedIn, Twitter, YouTube and Facebook.

Contacts

Adam W. Honeysett-Watts

Email

ahoneysett-watts@dtcc.com

Phone

+44 (0)20 3116 2409

dtccdotcom