Euroclear’s Collateral Optimisation Service has experienced sustained growth since launch, underpinned by increased adoption of the platform. MUFG is the latest client to benefit from these the service’s enhanced efficiencies.

By adopting the service, MUFG is extracting substantial value from the reallocation of its pool of collateral across trades and counterparties, enabling more dynamic decision-making and improved capital efficiency.

The Euroclear Collateral Optimisation Service enables clients to significantly reduce their overall funding costs through a more cost-effective collateral allocation, freeing up high-quality liquid assets.

The service provides automated, transparent management of collateral and liquidity, also allowing for faster responses during periods of market stress. The platform allows clients to run multiple scenarios in parallel, applying different objectives across business lines and adapting strategies to evolving market conditions. And is fully integrated within Euroclear’s Collateral Highway, which surpassed €2 trillion in collateral under management last year, facilitating the secure and efficient settlement of the transactions.

Andre van Hese, International Head of Securities Financing, MUFG said:

“Efficiency of decision making is key for MUFG so we are pleased to enable our trading desk to make optimal use of the collateral pool across a number of binding constraints, delivering time and cost savings.”

Marije Verhelst Head of Product Strategy and Product Development, Collateral Management and Securities Lending at Euroclear, commented:

“It is fantastic to see clients like MUFG adopting our Collateral Optimisation Service which demonstrates the tangible value it brings. We are focused on helping clients optimise their collateral more effectively and respond with greater agility in a complex environment.”