Copying and distributing are prohibited without permission of the publisher
BBH expands collateral management
09 April 2014
Partners with CME Clearing through its collateral management programme
Brown Brothers Harriman (BBH) has expanded its collateral
management capabilities through the CME Clearing IEF4
The partnership will extend BBH’s existing support
of collateral requirements for derivatives.
"BBH is focused on bringing flexibility, efficiency, and
integration to all touch points in the collateral lifecycle,"
said Stephen Bruel, head of derivatives product
"CME’s IEF4 program is an important part of this
strategy as industry attention moves away from preparing for
compliance with mandatory clearing rules, towards improving the
efficiency of collateral solutions. Regardless of where
in the collateral lifecycle an entity sits, this should be what
they are thinking about."
The main benefit of CME’s programme is it will
provide futures commission merchants (FCMs) and other industry
participants the choice to deposit corporate bonds into a
pledged tri-party custody account at BBH. This provides an
opportunity for more efficient OTC clearing and margin
collateral usage, said the bank.
BBH will also integrate its settlement banking platform with
CME Clearing’s collateral management programme,
which will provide BBH’s clients with "enhanced
functionality, efficiency, transparency, and future process