CloudMargin Partners with DTCC and Euroclear for Margin Transit Utility

The link expands GlobalCollateral’s Margin Transit Utility (MTU) to the cloud, allowing CloudMargin to introduce automation to the collateral lifecycle. The agreement makes CloudMargin the first technology provider to join the firm’s partner program.

GlobalCollateral is a joint venture between The Depository Trust and Clearing Corporation and Euroclear. The link—which is expected to go live in the fourth quarter of 2017—streamlines the processes involved in margin and collateral settlement for dealers and buy-side firms by capturing settlement instructions, accelerating processing, and consolidating reporting, the companies claim. Mutual clients of CloudMargin and GlobalCollateral will be able to access all features of the MTU, and will receive intraday settlement status alerts into CloudMargin.

Both firms believe automating the collateral lifecycle ensures data accuracy and increases transparency because it limits human intervention.

Simon Millington, head of product management for CloudMargin, says the collaboration has attracted a lot of interest from clients who are looking to meet daily variation margin requirements, in particular, which he says requires a technology solution.

“All financial institutions are striving for efficiencies within their daily processes,” he says. “The increase in volumes and move to same-day settlement has increased time pressures on treasury teams, necessitating automated processes.”