BlackRock has made its family of money market funds available to Euroclear Bank’s clients, enabling them to re-invest cash received as collateral in triparty transactions managed by Euroclear Bank. Re-investing cash collateral is a frequent challenge in this type of transaction.
For the first time, a new Euroclear Bank service feature gives triparty cash collateral takers the option to re-invest cash into an array of money market funds seamlessly through FundSettle. FundSettle is Euroclear Bank’s dedicated platform for fund transaction processing. BlackRock is one of the first providers of money market funds for this purpose. The cash re-investment service is available in euros, British pounds and US dollars.
Jo Van de Velde, Managing Director and head of Product Management at Euroclear, says: “Clients have come to rely on Euroclear as an agile leader of innovation and choice, a pacesetter to anticipate and support evolving market trends. Our close co-operation with BlackRock, as one of the early adopters to make their money market funds available, will meet the increasing demand from our clients to avoid re-deposit risks. Having multiple options to re-invest cash collateral is a key requirement from market participants in the secured markets. By offering a seamless cash re-investment service in money market funds to our clients, without any complexity, we add another dimension to delivering our post-trade made easy mission.”
Mark Stockley (pictured), Managing Director and head of International Cash Sales at BlackRock, says: “BlackRock is pleased to be an early partner in Euroclear Bank’s innovative offering. As an expert in liquidity management, BlackRock’s Cash Management Group is supportive of industry initiatives which provide solutions to our clients’ cash management needs.”