As the market in Europe prepares for the commencement of mandatory clearing, new clearing structures are being devised by CCPs (central counterparty clearinghouses) to make the process smoother, more cost efficient and, perhaps most pertinently, more collateral efficient for clients.

With increased demands being placed upon collateral, collateral management and optimisation has never been more important. Being able to source the right collateral at the right time is vital.

“Our EMIR authorisation is an important milestone,” says Marcus Zickwolff, senior advisor at Eurex Clearing. “It confirms full compliance of our clearing offering with the European Market Infrastructure Regulation (EMIR) rules. Now we can provide our clients and members with the clarity and reassurance needed to undertake their readiness planning and on-boarding preparation for the looming clearing mandate in Europe.”

Pension funds and their asset managers could soon be in a position to use a centrally cleared model for repo transactions, in order to source the cash collateral needed for variation margin to post against centrally cleared OTC derivatives.