Market taps corporate cash for collateral

European market infrastructure providers are eyeing corporate balance sheets as the industry-wide 'scramble' to secure liquid financing intensifies.

Monday 24 September 2012 at 17:00

European market infrastructure providers are eyeing corporate balance sheets as the industry-wide “scramble” to secure liquid financing intensifies.

Institutions, including Europe's biggest settlement houses Euroclear and Clearstream, are increasingly including cash-rich blue chip companies among their clients as a slew of new collateral-intensive reforms leads to a scarcity of liquid assets.