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State Street to pilot GlobalCollateral's Margin Settlement Messaging Service

First Published 11th July 2016

Fund administrator to pilot GlobalCollateral's settlement messaging service to streamline margin call processes, enhance client service and improve custodian communications.

Brussels, London, and New York - DTCC-Euroclear GlobalCollateral, a joint venture of Euroclear and The Depository Trust & Clearing Corporation, have announced that State Street Corporation has agreed to participate in a pilot program to test the their Margin Settlement Messaging Service.

GlobalCollateral's Margin Settlement Messaging Service powered by Margin Transit Utility (MTU) technology provides straight-through-processing for the settlement of margin obligations. State Street will initially pilot the MTU functionality with select client portfolios to evaluate how the technology could be leveraged more broadly.

"Global derivatives regulation will require market participants to completely transform their collateral management processes, if they are to keep pace with the expected increase in collateral calls," stated Mark Jennis, Executive Chairman at GlobalCollateral.