Non-cleared OTC derivatives - Preparing for a new era
As we move to a more transparent and robust OTC derivatives trading framework globally, there will be new standards for margin requirements for non-centrally cleared derivatives transactions.
A co-ordinated, and more holistic approach must be adopted across previously separately managed units to ensure initial margin can be exchanged on a gross basis to deliver maximum efficiency and protection to both counterparties in the event of default or bankruptcy.
Euroclear’s Collateral Highway, with its proven modular OTC derivatives margining offering lets you design a solution to fit your precise needs. Through the DTCC-Euroclear Global Collateral Ltd joint venture, we also provide access to collateral inventories in the US, allowing simple and efficient mobilisation of assets to meet your business needs.
What's more, our solution is already proven in the market and it meets the BCBS-IOSCO mandatory collateral segregation and control requirements on both a bilateral and triparty basis.