Eurex Clearing paving the way for digital collateral mobilization

Eurex Clearing extends its technical capabilities and announces the planned launch of collateral mobilization supported by Distributed Ledger Technology (DLT) in Q2 2025. This will set an example for enabling digital mobilization of collateral with the benefits of a secure CCP framework. The flexibility, speed and efficiency of collateral transfers will be enhanced by mobilizing collateral with the support of the HQLAX digital ledger. The goal is to ensure that securities collateral becomes easily accessible, independent of its physical location, and can be moved quickly and without incurring substantial costs. This will improve the immediate availability to meet the margin requirements set by CCPs. By achieving this, the process of fulfilling CCP margin requirements becomes even more efficient. 

Regulatory green light for seamless integration

Eurex Clearing has received regulatory non-objection from its regulator BaFin. The proposed DLT-supported functionality will enable Eurex’s clients to mobilize margin collateral via custodians and central securities depositories (CSDs) on the HQLAX digital ledger. Such collateral is being posted to Eurex Clearing as margin collateral at Clearstream Banking S.A.. The ambition is to enhance the flexibility, speed and efficiency of collateral mobilization capabilities for Eurex Clearing clients. Valuable insights from a client perspective were implemented throughout the process from J.P. Morgan, which plans to participate as the pilot clearing member. 

Enhanced flexibility offers client benefits

This initiative is a cornerstone of Eurex Clearing's collateral offering and digital services ambitions. Eurex Clearing continues to invest in and integrate innovative services, reflecting its commitment to provide cutting-edge solutions to its clients.

Helen Gordon, Global Head of Derivatives Clearing, J.P. Morgan, commented: “J.P. Morgan early on identified the benefits of using traditional assets in digital form to move cleared derivatives collateral and is pleased to see this regulatory milestone achieved. We look forward to the next phase of implementation and realizing the risk and optimization benefits associated with improved collateral mobility for us and our clients.”

Guido Stroemer, Co-founder and CEO of HQLAX, commented: “We are pleased to support Eurex Clearing in this pioneering initiative, which leverages our DLT platform to enhance collateral mobility and security for cleared margin.”

Marton Szigeti, Head of Collateral, Lending & Liquidity Solutions, Clearstream, adds: “We are thrilled that our colleagues from Eurex Clearing add the central clearing element to HQLAX’s collateral offering, further strengthening Deutsche Börse Group’s engagement. This collaboration underscores Clearstream’s commitment to providing efficient collateral solutions, shaping a secure digital financial landscape.”

Matthias Graulich, Member of the Executive Board at Eurex Clearing, concludes: "With this offering Eurex Clearing once again pioneers and upholds its status as the innovator in the CCP space. Eurex Clearing continues to invest in such advanced services, reflecting its commitment to providing cutting-edge solutions and services to its clients."

About Eurex
Eurex is the leading European derivatives exchange and, with Eurex Clearing, one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk.

***

Editorial note: Please find here photos of Helen Gordon, Guido Stroemer, Marton Szigeti and Matthias Graulich.