Both firms have agreed to allow their customers to use the Liquidity Hub Connect collateral management services, enabling the bank’s customers to consolidate their collateral holdings through Clearstream’s Global Liquidity Hub.
Due to the collaboration, the customers will be able to leave their assets in custody at Standard Chartered while avoiding any inefficient collateral fragmentation.
Standard Chartered Bank transaction banking global product head George Nast said that the agreement will allow the customers of both firms to cover their global exposures from a single collateral pool.
"Not only will clients across our footprint markets of Asia, Africa and the Middle East be able to effectively collateralise obligations on a real time basis, they can overcome an industry challenge of collateral fragmentation as well," Nast added.
In an attempt to satisfy new market regulations, the Liquidity Hub Connect assists financial institutions to deal with the challenges they face in mobilizing collateral.
Managing more than 1,700 offices in 68 markets, and employing over 89,000 staff, StanChart provides an array of financial services to its customers across the globe.
