Topic: Eurex Clearing: DLT-Enabled Collateral Mobilization Service
Date: 21 October 2025
Location: The Dome Room, 1 Cornhill, London, EC3V 3ND
Attendees: Representatives from BNP Paribas, Citi, Clearstream, Deutsche Bank, Eurex Clearing, HQLAx, HSBC, ING, JP Morgan, Merrill Lynch International, Morgan Stanley, Societe Generale & UBS
Facilitators: Richard Glen, Efthimia Kefalea
To summarize the objectives of the launch model and end state goals
To walk through the operational model from an ISA client and house perspective
To discuss planned enhancements and align on additional future capabilities
Process latency: Current workflows for satisfying intraday margin calls with securities are slow, fragmented and operationally complex. Increased speed of non-cash collateral delivery mitigates the risk of called for cash and the negative impact on a clearing members funding and liquidity.
A bridge to the future: The DLT-enabled service is a strategic move to deliver immediate benefits (reduced latency, operational efficiency) within current regulatory frameworks whilst providing a pathway to the future.
End state design: Many firms identified that a fully tokenized real-world asset model, where assets can be mobilized where they are held today to where they need to be, is the optimal end-state solution for maximum speed and operational efficiency. The CFTC’s tokenisation initiative in the United States was referenced within this context.
The power of choice: The DLT-enabled model is designed to be inclusive of multiple custodians and regions and was identified as the single biggest end client benefit.
Limited initial scope: The launch model focuses on the ability to mobilize non-cash collateral between Euroclear and Clearstream and there was interest expressed in connecting to the likes of DTCC and BNY in future to mobilize US assets.
Expanding reach and applicability: The opportunity to mobilize assets at a custodian like Euroclear without moving them via the bridge to Clearstream was seen as highly interesting and may create additional efficiency for GC Pooling activities for firms.
Scope and focus: The launch model has been designed to support the direct mobilisation of non-cash collateral to secure house and client margin obligations with initial margin (IM), variation margin (VM) and default fund contributions all in scope.
Impact on cash: Whilst the clearing member requirement to meet the Required Cash Amount (RCA) threshold across their aggregate pool remain in place, the DLT-enabled service is a powerful tool to mitigate liquidity drain for clients and clearing members and provides a real opportunity to condense the window for covering margin calls.
Streamlined operations: Operational efficiency is gained by removing friction points such as the bridge, reducing operational ‘hops’ and providing straight-through processing (STP) enhancements and automation options.
Foundational principles: The service has been designed to ensure that firms are able to comply with existing legal and regulatory frameworks. Segregation of assets at CBL is required to ensure proper close-out netting and liquidation. It was also highlighted that the model should not introduce any risk or impact to default management and simulation playbooks.
Managing collateral eligibility: Some firms expressed an interest in maintaining specific controls around collateral eligibility under the model, notably in respect to mitigating tax and asset servicing risk. The ability to mobilize JGBs at Euroclear towards Clearstream was identified to some clearing members.
Direct delivery: Whilst the model has been designed to enable clearing members to mobilize non-cash collateral towards Eurex Clearing, many firms supported a move that would allow end clients to leverage a direct delivery model. This would permit clients to take on the operational risk of mobilizing towards Eurex Clearing whilst giving clearing members rights to rather than ownership of the underlying assets.
Speed & efficiency: Whilst maximising straight-through processing (STP) is a central goal of the model’s end-state, clearing members & their clients are clearly looking for robust solutions that minimize errors, accelerate processing and improve scalability. The usage of triparty allocations and direct delivery were listed as priorities for consideration.
Road to Digital: It was acknowledged that the launch model is a stepping stone to broader digital transformation. It was perceived that the ability for Eurex Clearing to integrate directly with a digital ledger as well as support new asset classes will create long-term competitive advantage and operational excellence.
Scaling client experience: The ability to mobilize non-cash collateral efficiently across multiple clearing houses and jurisdictions is key. Leveraging triparty and direct delivery mechanisms to allocate collateral as well as providing clients with UI / API options to manage eligibility and substitution processes will help to achieve maximum adoption and benefit for clients.
“The future when everything is tokenized should mean that the only operational move required is step 1 to 6 directly without the other steps in between”
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