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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
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 improvements".