Effectiveness of new collateral forum questioned

Post-trade services provider Euroclear has questioned the effectiveness of a new forum meant to find solutions to help address an expected shortfall in high-quality liquid assets.

The group, called Liquidity Alliance, was launched last month, and includes the Australian Securities Exchange, Brazil's Cetip, Frankfurt and Luxembourg-headquartered Clearstream, Spain's Iberclear and Strate in South Africa. The aim is to exchange information, identify common needs and extend global collateral