HSBC launches OTC clearing collateral service
HSBC Securities Services has launched a new service designed to support clients in meeting the requirements of the G20 swap clearing reforms that are gradually extending into Europe and Asia.
Dubbed OTC Clearing Collateral, HSBC's new tool comes as EMIR clearing requirements are being phased in this year for most investment management firms, obliging them to clear OTC derivatives trades through a central counterparty.
Asian regulators are also due to introduce similar obligations if they don’t already apply.
HSBC's new service will provide a "highly automated collateral management service in response to these mounting regulatory changes," the firm said in a statement.
The tool offers automated margin payments, calculation and verification of margins and interest, as well as straight-through-processing for collateral movements via SWIFT links with custodians.
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