At Euroclear UK and International we understand the challenges you are facing in the ever- changing regulatory and business landscape.
Collateral management
Euroclear UK & International
Our term DBV product allows you to obtain liquidity to finance your daily activity while ensuring you do not sit on idle collateral.
DBV is a Euroclear UK and International collateral product that allows firms to borrow cash on a fully collateralised and secure basis.
Product specifics:
- A loan is agreed bilaterally between two counterparties.
- The cash amount is exchanged, DVP, versus one or more predetermined baskets of collateral.
- We perform a daily stock-based mark-to-market which maintains the correct collateral value relative to the cash borrowed.
- Should our system identify an imminent settlement transaction that requires stock pledged as collateral, a substitution will be processed replacing this required line of stock with an other of equal value, in line with the criteria of the basket.
- When the counterparties agree to close the loan, stock is returned line by line, DVP, in order to ensure the entirety of the loan does not remain open due to one line of missing stock.
The Bank of England (BoE) supports settlement in Central Bank Money (CeBM) in the CREST system by providing intraday Sterling (GBP) liquidity to the CREST settlement banks through SCR and a process known as auto-collateralisation.
Euroclear have optimised the SCR process to allow the automated return of assets at the BoE if sufficient liquidity is available throughout the day, rather than waiting for the end of the day process, increasing efficiency whilst reducing risks and costs.
You can find out more on our dedicated webpage here.
We offer several types of membership both for companies and private individuals.
