Collateral management: leverage technology to comply with new market infrastructure
VERMEG’s director of collateral management product Wassel Dammak analyses how the ECB’s Eurosystem Collateral Management System initiative will impact the collateral space upon its arrival in November 2023.
Central banks play an important role in ensuring sufficient liquidity is available to financial markets. One typical example of how technology can support innovation in collateral management is the Eurosystem Collateral Management System (ECMS) initiative led by the European Central Bank (ECB). The Eurosystem’s 19 individual National Central Bank (NCB) collateral systems will be replaced by a single harmonised system, the ECMS, in November 2023 and an orderly transition is vital to maintaining access to central bank liquidity facilities thereafter.
Read more in the ECMS article published at the Collateral Annual 2022 by Securities Finance Times (page 38) and learn more about:
/ Why is collateral important in the process?
/ Infrastructures play a significant role
/ Multi-pooling collateral
/ Challenges for banks to comply with ECMS
/ Digital to support market readiness