CME Clearing Europe selects globeSettle as collateral location venue

  • Third CCP to select globeSettle
  • Clearing members will be able to choose to place collateral with globeSettle
  • Helps meet CCPs new obligations under EMIR
  • Offers Broker dealers a straight through collateral and custody solution

London Stock Exchange Group’s new central securities depository (CSD), globeSettle, has been selected by CME Clearing Europe as an additional securities collateral location for their members. The agreement will allow clients and members of the central counterparty (CCP) to benefit from a straight through collateral and custody solution, provided by J.P. Morgan, thus creating a new pool of collateral liquidity in Europe.  Under EMIR, CCPs are required to hold collateral securities posted as margin at a securities settlement system.

Andrea Tranquillini, Managing Director Business Development, globeSettle said: “We are delighted that CME Clearing Europe has selected globeSettle as a collateral location venue. The appointment is further evidence of LSEG’s open-access model, where CCPs, brokers, clearing members and collateral providers can meet margin requirements in an efficient settlement and custody environment. We are working in order to expand our range of services to enable us to assist a broad range of customers meet the new requirements arising from on-going financial regulatory change.”

Lee Betsill, CEO, CME Clearing Europe said: “CME Clearing Europe are delighted to work with LSEG on the development of globeSettle as it increases the choice of settlement venue for each of our clearing account segregation models including the recently launched Fully Segregated account structure.”

globeSettle has already received regulatory approval to start operations as a Professional of the Luxembourg Financial Sector  and has applied for designation as a Securities Settlement System. globeSettle gives its clients access to J.P. Morgan’s collateral management services, delivering global collateral optimisation across a variety of structures, instruments and models.

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For further information:

Media 
Lucie Holloway +44 (0)20 7797 1222
newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.

The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.

London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 30 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.

Further information on London Stock Exchange Group can be found at: www.lseg.com