Clearstream Global Securities Financing The Global Liquidity Hub Excellence in collateral management Live since 2009 24/7 Real-time Across locations Across timezones Across asset classes Innovative solutions Award-winning service Clearstream’s world-leading Global Liquidity Hub encompasses a pioneering, comprehensive and flexible The Global Liquidity Hub regularly suite of products which deliver advanced collateral receives top marks in industry surveys such as the Global Custodian Triparty management and securities lending and borrowing for Securities Financing Survey and the both financial and non-financial institutions worldwide. Global Investor / ISF Triparty Survey. Clearstream is always particularly We’ve turned a vision into reality commended for its outstanding collateral management services The Global Liquidity Hub was launched offers a comprehensive collateral and its efficient customer service. in 2009 but is built on Clearstream’s management and securities financing long-standing experience in post- environment. Our highly sophisticated trade services. Indeed, we were the systems enable customers to manage first supplier to launch triparty repo their collateral efficiently in real-time, in Europe in 1992. Today, Clearstream’s regardless of asset class, location award-winning Global Liquidity Hub or timezone. A global priority How the Global New regulations adopted in the wake of the financial crisis require systemic Liquidity Hub changes for many financial institutions and corporate treasuries. The current regulatory focus on risk management has a major impact on the way institutions works for you around the world securitise their exposures. In a nutshell, the whole market will need to optimise collateral to make the most of their assets. The Global Liquidity Hub’s open architecture maximises opportunities for customers. Additionally, Right here, right now Clearstream’s situation within the Deutsche Börse Group provides Clearstream took the decision some years ago to invest significantly in developing customers with easy access to Eurex its cutting-edge Global Liquidity Hub, at the heart of which lies the most Clearing, a central counterparty, sophisticated and robust collateral management system in the world. The Global and Eurex Repo. Liquidity Hub enables unlimited security substitution and re-use, in multiple pieces and in a variety of currencies for bonds, cash, equities and funds as The participants in the Global collateral – and all this with real-time allocation and built-in optimisation. Liquidity Hub come from all corners of the globe and we have offices Clearstream customers gain the benefit of automated collateral movements with dedicated specialist staff in with leading central counterparties such as Eurex Clearing, LCH.Clearnet, Luxembourg, Frankfurt, London, CME Clearing Europe, ICE Clear Europe and LME Clear. In addition, customers New York, Hong Kong, Dubai and can pledge collateral to selected central banks (Bundesbank, Federal Reserve Singapore who can guide customers Bank of New York and the Banque Centrale du Luxembourg). through the collateral management and securities lending options. Today, Global Liquidity Hub users benefit from a collateral pool which is both wide and deep (more than EUR 600 billion outstanding), a network of more The Global Liquidity Hub enables than 550 active counterparties and an entire suite of products which can customers to optimise their collateral facilitate flexible collateral management agreements. and source liquidity. Clearstream facilitates the injection of much-needed Customers particularly appreciate our two flagship products: ASLplus, a liquidity into the market. The system securities lending service in which Clearstream absorbs risk by acting as the works 24 /7, handles trillions of Euros principal, and GC Pooling®, a collaboration between Clearstream, Eurex Repo in volumes and is very robust. and Eurex Clearing which provides a liquid market for secured funding in EUR and USD via a range of collateral baskets. Global Liquidity Hub products and user groups Collateral Management T Securities Lending COLLA ERAL NAGEME – Collateral trading units (re-use) MA NT – Agent lenders – CCPs (segregation models) – Principal lenders – SPVs (special purpose vehicles) – Insurance companies /pension funds – OTC derivative desks C – CCPs (securities lending) O S P L E G I L L Clearstream’s N T E A I I D T Collateral D R G E N Management U E R C E A System E L L Collateral Pledge S Triparty Repo – Central banks and supranationals – Cash lenders (customised baskets) – CCPs (initial margin) – CCPs (standardised baskets) – Collateral optimisation units T – Central banks and supranationals RIP EPO – Structured capital desks ARTY R – Corporates Collateral management partnerships The Global Liquidity Hub’s unique open architecture enables market KS participants to connect to our N C A S collateral management engine, B D T T s thereby also granting their underlying N C G E E O clients access to Clearstream’s G N A N award-winning triparty collateral O management services. C Clearstream has established four GLOBAL separate Liquidity Hub partnership LIQUIDITY streams for different types of HUB market participants. These strategic partnerships greatly extend the reach S E T of the Global Liquidity Hub and enable C S L E E E the buyside (for example corporates, B C L U U L N T E pension funds and asset managers) Y O V S C as well as customers of market ID G E IN infrastructures, agent banks and A D T R electronic platforms to benefit from Clearstream’s collateral management solution. consolidate their assets held at both In cooperation with Eurex, buyside Liquidity Hub GO institutions into one single pool to treasuries can rely on Clearstream’s Outsourced collateral management perform collateral management full post-trade support for all their solutions for market infrastructures transactions with any Clearstream triparty repo and OTC derivative collateral receiver. transactions, be they cleared or Liquidity Hub GO (Global Outsourcing) uncleared. provides domestic market A unique feature of the service is infrastructures such as central that this collateral allocation is GC Pooling Select gives buyside securities depositories (CSDs) with performed in real time and only up to customers access to secure cash a fast and efficient way to develop the required amount. Liquidity Hub lending options within GC Pooling’s customised collateral management Connect is particularly attractive for central bank money environment. services. customers looking for a collateral management solution which fully Liquidity Hub Collect A unique feature of the service is combines local trading activity Triparty repo solutions for electronic that the underlying assets remain with fully automated collateral platforms in their domestic jurisdiction. mobilisation. Clearstream initially developed the Our partnerships with trading venues service for ASX (Australia), Cetip Liquidity Hub Select and electronic platforms, such as (Brazil), Strate (South Africa) and Collateral management solutions Newedge/ACM and 360T enable Iberclear (Spain) and is currently in for buyside customers customers to trade in a more efficient, talks about developing GO with other secure and automated way with infrastructure providers around the Liquidity Hub Select bundles the 100% straight-through processing. world. Global Liquidity Hub services aimed In addition, buyside customers can at buyside companies who are looking validate a trade directly from the Liquidity Hub Connect for secure alternatives in the money Bloomberg Professional service Triparty collateral management market. before the transaction information is solutions for agent banks transmitted to Clearstream. Triparty repo is an excellent solution Liquidity Hub Connect gives mutual for corporates who wish to act Liquidity Hub Collect is attracting customers of Clearstream and agent as cash providers and then earn new types of customers into the banks access to the full service additional revenue by re-using the Global Liquidity Hub which creates a suite of the Global Liquidity Hub securities they receive as collateral more diversified trading network of while the agent banks remain the from their counterparty, for example counterparties. local custodians. Customers can to cover OTC derivative exposures. Customer service A history of creating opportunities is our specialty for our customers Some of our customers are very active in the repo market or frequently avail Key developments of a wide range of our products but others are not as experienced. Clearstream’s collateral management engine is very sophisticated and our 2014 OTC Collateral products can carry out very complex tasks but we make it easy for our Launch of TradeCycle with Commerzbank, Clearstream repurchase customers. 2013 conditions, Liquidity Hub Collect, Liquidity Hub Select Equity lending in ASL and ASLplus We pride ourselves on making sure all 2012 Liquidity Hub Connect our customers receive a high quality of service and we foster a good 2011 Liquidity Hub GO working relationship to ensure you make the most of your assets and feel secure through all your transactions. 2010 Equities and funds as collateral Triparty collateral allocation to the Banque centrale du Luxembourg Trust and integrity 2009 Launch of The Global Liquidity Hub Trust is paramount in any working GC Pooling® for international clients relationship and especially in the 2007 financial services sector. A key characteristic in the banking