Brown Brothers Harriman (BBH) has expanded its collateral management capabilities through the CME Clearing IEF4 programme.
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 management.
“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 bank.
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”.