ASX to develop code of practice for cash equities clearing and settlement
ASX will put in place a code of practice for clearing and settlement of cash equities. The Exchange will work with industry stakeholders to develop this code. In addition, ASX is making substantial investments in its clearing and settlement infrastructure. The ASX investments will strengthen Australia’s position in the Asian region and globally, and support Australia’s G20 commitments. The innovations, to be launched in 2013, include the clearing of OTC-traded derivatives and a new service that allows ASX clients to optimize the use of their available collateral.
Clearstream to expand its global collateral management services to bilateral OTC derivatives
Clearstream and Belfius have agreed to develop exclusively a new collateral management activity for bilateral trades, focusing on OTC derivatives and aimed primarily at corporates and medium-sized banks. It is expected that the new outsourced service will be launched later in 2013 following the signature of a Letter of Intent. The deal is the latest in a number of strategic partnerships created by Clearstream as it extends the reach and capabilities of its Global Liquidity Hub, a collateral management environment delivering worldwide services across borders, asset classes, time zones and products on an open architecture basis.
CME Clearing Europe expands OTC energy offering
CME Clearing Europe has added two new OTC European natural gas forward contracts for clearing: the UK National Balancing Point Natural Gas Physically Delivered Forward contract and the Netherlands Title Transfer Facility Natural Gas Physically Delivered Forward contract. They will be listed for clearing on CME ClearPort and will be subject to the rules of CME Clearing Europe. These contracts will launch on 25 February 2013 subject to approval by the Financial Services Authority (FSA).
Liquidity Alliance launched by five CSDs
In order to ensure that CSDs/financial infrastructures ensure they are well-positioned to provide solutions to the global collateral shortage through optimization of collateral pools, five CSDs have formed the Liquidity Alliance, an association of industry peers which aims to create a sustainable international industry approach to address the global collateral crunch. It was formed by five initial members: ASX CSD, Brazilian CSD Cetip, Clearstream, Spanish CSD Iberclear and South African CSD Strate. The goal of the Liquidity Alliance is to exchange information, identify common needs and to extend global collateral solution. It will be a dynamic forum and open to additional participants from all regions.