State Street Connects Collateral+ to DTCC
Posted by Colin Lambert. Last updated: August 25, 2021
State Street’s Collateral+ business has connected to DTCC’s Margin Transit Utility (MTU) to simplify the transfer of collateral amongst market participants.
The firms says the connection means it will now be able to more efficiently validate, enrich, settle, report and monitor third party collateral while connecting to and sharing information with multiple counterparties on behalf of its clients.
DTCC’s MTU service standardises and automates the margin process from the point of agreement through to settlement, thus eliminating the need for faxes and emails for processing margin and settlement activity.
“We continue to focus on making key investments in all areas of the firm’s Collateral Optimisation Group, and given the recent and continuing market volatility, coupled with the final phases of uncleared margin rules (UMR) for OTC derivatives, an increasing number of our clients are looking to replace manual processes with new tools that focus on automation such as DTCC’s MTU,” says Staffan Ahlner, global head of Collateral+ for State Street. “We expect this functionally to be essential for our ability to improve operational efficiency and remove unnecessary complexity so that overall risk is mitigated and collateral is ultimately released quicker.”