Clearstream today announced that it has launched the Collateral Mapper, a data-driven solution designed to optimise collateral management.
According Deutsche Börse Group’s subsidiary, the Collateral Mapper offers clients an automated and inclusive overview of their collateral positions, allowing for informed decision-making. This novel solution presents complicated sets of collateral usage reports in a user-friendly dashboard and assesses the collateral potential of an equity portfolio.
Clearstream further noted that its new tool detects any excess capacity available for rebalancing an inventory towards equity, thereby highlighting the potential to free up higher quality assets. The advantage of using the Collateral Mapper, the firm detailed, is that it eliminates errors by automatically updating based on end-of-day data without requiring any manual intervention.
Clearstream states that traditional collateral management has relied heavily on manual processes, which has resulted in inefficiencies, high costs, and errors. As a result, market participants are always looking for ways to simplify the process, minimize errors, and improve efficiency.
Priya Sharma, Head of Data & Connectivity at Clearstream, said:
Due to the current changing interest rate climate, market participants are placing 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 maximise 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.
Marton Szigeti, Head of Collateral, Lending and Liquidity Solutions at Clearstream, added:
Providing our clients with reliable and scalable state-of-the-art solutions that reduce the frictional costs of trading through transparency and automation is core to our 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.
