Euroclear for banks and broker-dealers

Post-trade made easy A safe, secure and trusted partner

With Euroclear, you can be sure that you have chosen a robust, resilient and financially secure partner

• Over 20 years of unblemished track-record of reliability in collateral management • Rated AA+ by Fitch Ratings and AA by Standard & Poor’s • Over EUR 1 trillion of collateral mobilised daily Providing increased efficiency in a new post-trade world

Euroclear equips you with New regulations are shaking up the At the same time, T2S is creating post-trade landscape. They’re not only opportunities to optimise liquidity the tools you need to creating challenges for banks and management in Europe. Firms are maximise your post-trade broker-dealers but also opportunities being provided with new means to for greater efficiency. In order to adapt pool cash and collateral, thereby efficiency in the new to the new environment, you need to reducing the cost of financing. optimise liquidity and maximise the regulatory environment. fluidity of collateral – or risk suffering So how can banks and broker-dealers competitive disadvantage. bridge international barriers to access liquidity? How can you access and By connecting the industry Reforms like Basel III (Liquidity control your inventories globally? Coverage Ratio, Net Stable Funding How can you access central banks globally, we provide Ratio, intraday liquidity reporting, and clearing facilities? And how can access to the world’s Risk Weighted Assets…), Dodd-Frank you transform assets on demand to and European Market Infrastructure match OTC collateral requirements? largest pool of collateral, Regulation (EMIR) are driving up allowing you to optimise demand for collateral, and especially At Euroclear we’ve built the high-quality collateral. Although the affordable answers to these questions. intra-day liquidity and pool of the Organisation for Economic Our platform optimises liquidity, Co-operation and Development amplifies asset mobility, manages mobilise assets without (OECD) AAA and AA-rated sovereign risk and improves transparency. In compromising . debt of USD 33 trillion1 should be this way, you can meet your margin sufficient to meet demand, firms will call requirements, protect your have to identify, source, borrow and competitiveness and minimise your mobilise far more collateral than they cost of funding. did in the past, far more quickly.

1 IMF Global Financial Stability Review 2012.

1 Euroclear for banks and broker-dealers Tools to enhance fluidity and liquidity

Our range of solutions is affordable, scalable and secure. They equip you to rise to the challenges of a new era, when collateral is the new cash and efficiency paramount. They include, not only traditional solutions such as triparty repo and equity finance, but also forward-looking solutions that provide access to fresh liquidity from central banks.

Our collateral management solutions requirements on both a bilateral and or elsewhere. You can mobilise help maximise your efficiency and triparty basis. Our approach, based securities as collateral for triparty repo, optimise liquidity. You can mobilise all on processes tried and tested in the while keeping your existing domestic your collateral, increase its velocity and securities financing world, leverages agent-bank relationships for holding, gain improved access to intraday credit. our wider network and capabilities settling and servicing your domestic to provide unprecedented access to assets. Open Inventory Sourcing is OTC Derivatives collateral globally. available for equities and fixed income Euroclear’s modular OTC derivatives across the United States, seven margining offering lets you design a Open Inventory Sourcing European and two Asian markets. solution to fit your precise needs. What Through Open Inventory Sourcing is more, our solution is already proven (OIS), you can collateralise assets from in the market and it meets mandatory a range of domestic markets whether collateral segregation and control they’re held at Euroclear Bank

Open Inventory Sourcing automation of collateral markets 2016

Debt markets by total size Equity markets by total size

Spain Singapore Netherlands Netherlands Hong Kong Germany Italy

Italy Singapore France Belgium

France Hong Kong

United Kingdom

Canada Germany

Canada

Japan United States Japan United States

• OIS markets 2016

2 Euroclear for banks and broker-dealers A safe, secure and trusted partner

GCAccess Securities lending & borrowing Euroclear is an operationally Gain access to the world’s largest Our securities lending & borrowing robust, resilient and financially pool of high-quality lendable assets. programme, including triparty secure partner. Our clients trust Through General Collateral (GC) securities lending, is tried and tested. us to mobilise more than Access, you borrow high-quality By choosing to make all, or part, of EUR 1 trillion daily. We’ve built a securities to meet your regulatory your securities inventory available record of reliability in collateral needs. You can borrow (or lend) on an via the lending pool, you can benefit management over more than anonymous basis in an extremely safe from efficient and secure lending 20 years, and are rated AA+ by environment, with a Euroclear Bank revenues. By becoming an automatic Fitch Ratings and AA by Standard guarantee. Furthermore, Euroclear borrower, you can avoid settlement & Poor’s. shoulders the full burden of collateral fails and counterparty claims. management administration. You can rely on us to invest Equity finance continually for the long term, Correspondent Central Maximise the use of your equities anticipating how changing Banking Model as collateral with our enhanced regulations, technology and Using triparty repo is the easiest way to equities capability. Tailor this flexible globalisation will affect your access Eurosystem central bank liquidity. triparty service to your requirements. needs many years into the future. Our Correspondent Central-Banking Choose from a wide range of indices. In this way, we give you tools Model (CCBM) selects collateral Customise eligibility profiles to create to adapt to new challenges and according to your rules. Substitution a collateral profile in line with your risk opportunities. Industry owned and of collateral is fully automatic should appetite. Operate across equities, ETFs, governed, we’re always improving you need it. We provide daily mark- convertibles and depositary receipts. the ways our infrastructure serves to-market for up-to-date collateral the market. valuations and automatically generate any margin calls. More than 100 central banks and supranational agencies, RepoAccess leading sell-side and buy-side Improve your access to the growing firms, as well as other industry pool of corporate liquidity. Leveraging infrastructures and a growing a variation of the Global Repo Master number of corporates, turn to us Agreement standard, we’re making for post-trade services. Our open life easier for the community of architecture, enhanced settlement corporates who want to start using efficiency, global pool of collateral triparty repo. and scalable technology provide the platform you need in order to operate in the post-trade world’s new era.

3 Euroclear for banks and broker-dealers Making the most of your collateral

Our Collateral Highway platform improves your access to collateral. Robust and scalable, it’s the first open market infrastructure that equips you to source and mobilise collateral across borders and time zones. No matter where your collateral is held, you can break down regional silos and transform asset classes.

Arrivals

We help you: Connect your collateral globally More than 200 major investment • make sure the right assets are in Leverage our global, multi-asset institutions rely on Euroclear to the right place solution to connect multiple entry handle the day-to-day operational • avoid margin squeezes and exit points across time zones burden of securing their exposures. • focus on funding requirements and locations. Our GlobalCollateral • gain certainty and security over joint venture with the DTCC gives collateral agreements you access to the largest global pool of collateral. With its open In particular, you gain the architecture, you can access your following three benefits. collateral no matter where it’s held.

Optimise your collateral assets Maximise your competitiveness Optimise and mobilise assets as By relieving you of the operational required to quickly meet your burden, we allow you to focus business needs. Our infrastructure on the really important issues – allows you to coordinate your ensuring your business remains inventories, regardless of region relevant and competitive. or time zone.

4 Euroclear for banks and broker-dealers Contact details Discover the value of working with Euroclear For more information, please contact

Olivier de Schaetzen Head of Product Solutions, Collateral Management +32 (0)2 3262884 [email protected]

5 Euroclear for banks and broker-dealers © 2016 Euroclear SA/NV, 1 Boulevard du Roi Albert II, 1210 , Belgium – Tel: +32 (0)2 326 1211 – RPM Brussels number 0423 747 369. Euroclear is the marketing name for the Euroclear System, Euroclear plc, Euroclear SA/NV and their affiliates. All rights reserved. The information and materials contained in this document are protected by intellectual property or other proprietary rights. All information contained herein is provided for information purposes only and does not constitute any recommendation, offer or invitation to engage in any investment, financial or other activity. We exclude to the fullest extent permitted by law all conditions, guarantees, warranties and/or representations of any kind with regard to your use of any information contained in this document. You may not use, publish, transmit, or otherwise reproduce this document or any information contained herein in whole or in part unless we have given our prior written consent. Your use of any products or services described herein shall be subject to our acceptance in accordance with the eligibility criteria determined by us.

euroclear.com Euroclear is a carbon neutral company PAS2060 certified • MA3762 • June-2016