The Liquidity Alliance, the global association of market infrastructures delivering collateral management services to their markets through a common platform, has announced the implementation of a new customer connectivity solution. The new interface was developed on the basis of experience and feedback received from clients using the underlying collateral management solution since its introduction in 2011.
The ongoing need for market participants to adapt their collateral management practices to new regulatory rules and changing business models has led the Liquidity Alliance to significantly upgrade its customer connectivity solution. The new front-end will deliver enhanced transparency and further advanced management tools for the collateral transactions included in the services offered by the Liquidity Alliance members. In addition, there will be much more flexibility to dynamically adopt the solution to new customer needs surfacing over time.
Having been the first entity to adopt the Liquidity Alliance collateral management solution back in 2011, Cetip, the Brazilian central securities depository, is currently preparing the launch of the new connectivity interface in November 2014 as a pilot for the entire Liquidity Alliance. The other Liquidity Alliance members – ASX (Australia), Clearstream (Luxembourg and Germany), Iberclear (Spain) and Strate (South Africa) – are also part of the subsequent rollouts, which will bring the benefits to customers across the globe from 2015 onwards.
Fabio Zenaro, Products and Business Executive Manager at Cetip, said, “We led the way by implementing the system in 2011 and we have developed with Clearstream a pioneering solution that is a blueprint for other market infrastructures across the globe. With over three years of experience in operating our collateral service for Brazil, we consider it very important to continue bringing innovation to our clients.”
Stefan Lepp, Member of the Executive Board and Head of Global Securities Financing at Clearstream, said, “Being part of the Liquidity Alliance with its global reach has enabled us to understand customer requirements even better and to define superior solutions to service their needs together with our partners. As the technical solution provider, Clearstream is pleased to deliver the next generation of customer connectivity which will bring benefits to all current and future Liquidity Alliance members and their clients.”