Eurex Clearing has executed its first live transaction using distributed ledger technology (DLT) for collateral mobilization, with JP Morgan transferring securities for Dutch pension fund PGGM through the HQLAX platform. After the solution went live at the end of June, the transaction represents the first time a central counterparty has accepted collateral moved via DLT in a production environment.
The Deutsche Börse subsidiary’s new service allows clients to instantly access securities collateral regardless of location, transferring assets to Clearstream Banking for use as margin collateral at Eurex Clearing. This marks the operational debut of the platform that received regulatory approval from BaFin earlier this year.
Traditional collateral posting methods involve moving securities between different custody providers and central securities depositories (CSDs), creating operational delays that can extend for days and prevent after hours processing. The HQLAX system eliminates these bottlenecks by keeping assets with their current custodian while generating digital records of ownership changes. This enables real time collateral transfers to Clearstream without the movement of the underlying asset. The Deutsche Börse Group is both a major backer of HQLAX and plays a critical role, acting as a trusted third party between the custodians and the HQLAX digital collateral registry.
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