An international partnership between the ""Depository Trust & Clearing Corporation"":http://www.dtcc.com/ (DTCC) and ""Clearstream"":http://www.clearstream.com/ci/dispatch/en/kir/ci_nav/home is set to enhance operations for bilateral loans. The companies plan to combine DTCC's Loan/SERV and Clearstream's collateral management platform to streamline the registration and reconciliation of loans, as well as facilitate the use of loans as collateral.[IMAGE]
DTCC and Clearstream will use the collaboration to support credit claims and syndicated loan markets, with Clearstream initiating the leveraging of DTCC's Loan/SERV reconciliation service during the first half of 2012. In addition to the updated joint offering available via Loan/SERV, the entities will also build out integrated bilateral loan services.
Prospective and existing clients in Europe, the Middle East, Africa, and Asia will now be able to take advantage of DTCC's Loan/SERV product when it's distributed in its new and improved format. Loan/SERV and Clearstream's program will focus heavily on the automation of reconciliations, which allows agent lenders to routinely view and work with syndicated loans on a daily, 24/7 access basis.[COLUMN_BREAK]
As part of its upcoming 2012 launch, the joint venture will encompass the processing of European-based bilateral loans, and the companies will target the mobilization of the related portfolios for use as collateral within the country's respective national banks.
DTCC and Clearstream will also handle the extension of potential assets to be utilized as collateral for interbank, triparty transactions, in compliance with the ""ICMA European Repo Council"":http://www.icmagroup.org/About-ICMA/ICMA-Councils/European-Repo-Council.aspx (ERC).
DTCC's chief operating officer, Michael C. Bodson, said of the partnership, ""We are pleased to partner with Clearstream on this initiative. The strategic partnership will benefit the customers of both DTCC and Clearstream by bringing together highly complementary strengths and services in loans and collateral management respectively, as well as help expand existing loan services in Europe and elsewhere.""
Jeffrey Tessler, Clearstream's CEO, echoed Bodson's positive statements, adding, ""We are pleased to cover a new asset class with our services and create a new market infrastructure for loans. We are looking forward to partnering with DTCC and to be able to draw on DTCC's experience of the syndicated loan market. Our goal is to improve the existing syndicated loan service for bilateral loans and enhance it with our collateral management capabilities.""
Luxembourg-based Clearstream functions as a post-trade service provider of Deutsche Borse Group, and the company is also an international central securities depository.
Stateside, DTCC is located in New York City, New York, and the entity specializes in clearance, settlement and information equity services, corporate municipal bonds, government and mortgage-backed securities, money market instruments, and over-the-counter derivatives.