Update on DTCC-Euroclear GlobalCollateral Joint Venture

London, 14 January 2020 - 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 10 March 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.

Euroclear group is the financial industry’s trusted provider of post trade services. At the core, the group provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.

The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 791 trillion in securities transactions in 2018, representing 230 million domestic and cross-border transactions and held an average of EUR 28.8 trillion in assets for clients.