Clearstream was the standout performer of the 2015 survey. It achieved the highest global score when all respondents were considered, both in terms of the weighted methodology (5.67 out of 7) and raw data (5.9). It repeated this feat in Emea, where it scored 5.58 and 5.76 respectively. It was only one of two firms that qualified in Asia Pacific.

In the global service categories, Clearstream achieved the winning score in 13 of the 17 tables. In the Emea service categories, it achieved the top score in eight of the tables. In Asia Pacific, Clearstream achieved top spot in five service category tables (one jointly). 

Respondents highlighted several top-notch aspects of its performance, with customer service receiving the most attention: “The relationship manager and GSF product manager serviced us very well, both are very client-focused and knowledgeable;” “relationship management is very good”; and “efficient client service”. 

When only repo respondents were considered, Clearstream again took the top global and Emea scores (and was the only firm to qualify in Asia Pacific) under the weighted methodology and in terms of raw data. 

One repo respondent in Emea praised its “excellent service in combination with state of the art IT/STP tools and processing” while another its “linkage to settlement agent CSD; linkage between Eurex Repo CCP and Tri-party; ability to use collateral in central bank; range of clients; as well as very good settlements and substitution capability”. 

Among securities lending respondents, Clearstream achieved a second place finish both globally and in Emea by raw data, and a third and second place finish weighted. 

One securities lending respondent in Emea praised Clearsteam’s “quality of service (helpful, proactive and knowledgeable staff ), innovation and development strategy (Liquidity Hub, lighter contractual framework for repo), and ease of managing collateral baskets”. 

BNY Mellon 

BNY Mellon was the only tri-party provider to qualify in each of the three regions. When all responses were considered it achieved a winning score in the Americas and Asia Pacific, both by the weighted methodology and the raw data. 

In the global service categories, BNY Mellon took the top spot in four of the 17 tables. In Emea it had two winning category scores. In Asia Pacific, it was the winning score in 12 categories (one jointly). 

In the Americas, BNY Mellon was the only firm to qualify for the service categories. It achieved an average score for the region of 5.7, which compares to its average score globally of 5.67 (it was 5.41 for the Americas and globally for weighted). 

When only the views of securities lending respondents were taken into consideration, BNY Mellon’s position improved substantially. It took the top spot both globally and in Emea, under both the weighted methodology and in the raw data tables. 

One securities lending respondent praised several attributes: “Communication at an RM level is very good; handling of queries; solutions for different trade requests (structured); and assisting in the build out of new tech enhancements for the dealer.” 

When only the views of repo respondents were taken into consideration, BNY Mellon came third in both weighted and raw data. Reflecting its dominant position in the US market, it was the only tri-party provider to qualify in the Americas. One repo respondent in the Americas praised its “relationship management” and said it “understands our business and business needs, working with us to implement new requirements”. 

One securities lending respondent in Emea praised its “client base variety, flexibility in defining a collateral schedule and relationship management team”. 

Euroclear 

Euroclear was the third placed tri-party service provider in its home market of Emea under both the weighted methodology and in terms of raw data. It qualified for the global and Emea tables of both repo and securities lending respondents. 

Euroclear achieved second place in four of the service categories in the Emea region: Ability to create bespoke schedules ( jointly); breadth of supported eligibility criteria; handling of fails; and implementation of collateral sets/schedules. 

Euroclear received very positive comments from its clients. One repo respondent in Emea commented: “Client service is very good and they are very helpful. They look to go above and beyond to help with any issues.” One securities lending respondent highlighted its “client base, innovation potential – for example their Collateral Highway” while another added it was “always willing to better their service to us”. 

Six Securities Services 

Six Securities Services was well represented in its home market of Emea. It achieved second place in the Emea tables when all respondent views were taken into consideration, both weighted and raw data. 

Six Securities Services excelled in certain service categories. It achieved winning scores in seven categories in Emea: access to counterparties; accuracy of margin calls; breadth of market coverage; handling of fails; quality of static data; timeliness of margin calls; and timeliness of settlement. 

One repo respondent in Emea commented: “They are listening quite well to their customers and try to implement their demands as fast as possible.” Another added: “Good client service, enables access to the Swiss market.” 

When only the views of repo respondents were taken into consideration, Six Securities Services was eligible for the global table and it achieved second place both weighted and raw data. It also achieved second place in Emea, both weighted and raw data. 

JPMorgan 

JPMorgan only qualified for one set of tables, securities lending respondents globally. In these it achieved third position for both weighted and raw data. 

While JPMorgan was not eligible for the service categories due to a lack of responses it did receive a number of comments from clients. One securities lending respondent in Emea commented: “Good RM. Good communication. Record date funding is a huge strength.” Another added that its “wide range of markets allow for a wide pool of collateral”. 

Methodology:

The survey is open to all users of tri-party agents’ services. Respondents are required to rate their tri-party agents across 17 service categories on a scale of 1 to 7, where 1 is unacceptable and 7 is excellent. Respondents are also required to answer questions about their own tri-party activities. 

RAW DATA TABLES 

To calculate raw data tables, a simple average of all relevant responses for each tri-party agent is generated to create a score. Historically, these tables were labelled as unweighted. 

WEIGHTED TABLES 

Respondents are required to rank 17 service categories in order of importance. The rankings of all respondents are then combined to create weightings for each service category. The more important a category is considered, on average, by all respondents, the greater the weighting. 

Therefore, tri-party agents that score highly in the service categories considered most important by respondents will obtain a higher weighted score. 

These weightings are normalised around 1 (between 0 and 2) to preserve comparability with raw data scores. A firm’s raw data score for a particular category is multiplied by the weighting for that category to create its weighted score. 

TABLES 

The following tables will be calculated: 

Global overall table 

Tri-party agents must receive minimum of 15 responses globally and must qualify in two regions to qualify. Weighted and raw data tables are generated. 

Regional overall tables 

To qualify in each of the three regions tri-party agents need a minimum number of responses (across repo, securities lending and other collateral management respondents). The respondent’s location (not the tri-party agent’s) defines where the response is allocated. Weighted and raw data tables are generated. The minimum number of responses for each region are as follows: 

• Emea: 10 responses 

• Americas: 10 responses 

• Asia Pacific: five responses 

Global repo table 

Repo respondent’s scores are averaged to give a score for each qualifying agent. A minimum of five responses is required to qualify globally. Weighted and raw data tables are generated. 

Global securities lending table 

Securities lending respondent’s scores are averaged for each qualifying agent. A minimum of five responses is required to qualify. Weighted and raw data tables are generated. 

Global other collateral management table 

Other collateral management refers to all activities that are not covered by securities lending or repo. This includes but is not limited to: CSA activities (for example, OTC derivatives); bespoke credit agreements; central bank access; and CCP access. Scores are averaged for each qualifying agent. A minimum of five responses is required to qualify. Weighted and raw data tables are generated. 

Global service categories 

Tables are generated for each of the 17 service categories. These tables include all respondents’ scores, globally, and for repo, securities lending and other. Tri-party agents must receive a minimum of 15 responses globally and must qualify in two regional overall tables to qualify. Only raw data tables are generated.

 

SERVICE CATEGORIES 

Respondents are asked to rate their tri-party agents across the following 17 service categories: 

• Ability to create bespoke schedules 

• Ability to manage equities as collateral 

• Access to counterparties 

• Accuracy of margin calls 

• Breadth of market coverage 

• Breadth of supported eligibility criteria 

• Collateral reuse/rehypothecation 

• Dividend collection 

• Handling of fails 

• Implementation of collateral sets/schedules 

• Level of STP offered 

• Quality of client service 

• Quality of reporting/client interface 

• Quality of static data 

• Substitution capability 

• Timeliness of margin calls 

• Timeliness of settlement

QUALIFICATION 

If a tri-party agent is rated multiple times by the same respondent in the same country the ratings will be averaged and will only count as a single response for the purposes of qualification.