Eurex to launch securities lending CCP service
05 November 2012 London
Image: Shutterstock
Eurex Clearing will launch Europe’s first central counterparty (CCP) service for the bilateral securities lending market, in partnership with Pirum Systems and Clearstream Banking.
The new CCP service “preserves the key features of the OTC market for both lending and borrowing counterparties. The clearing house as single counterparty to all trades will reduce counterparty risk exposure and eliminate the need for multiple credit evaluations,” said a statement from the company.
Eurex Clearing’s lending CCP will combine the trading capabilities of Eurex Repo’s SecLend Market and Pirum's Real-Time service, with the triparty collateral management services of Clearstream Banking Luxembourg and Euroclear Bank. The new offering also meets regulatory requirements, including Basel III and IOSCO proposals.
Thomas Book, member of the Eurex executive board and responsible for clearing, said: “Our new clearing offering for securities lending has been designed with support from key market participants who have committed to utilise the service to achieve a substantial reduction in capital allocation. We have completed testing of our offering and are ready to start a pilot phase with our early adopters.”
“Our set-up will enable customers to make use of their existing connectivity to these dynamic service providers for trade and collateral management and to take the benefit of substantial improvements to the current market structure by delivering significant capital and operational benefits to all participants,” added Book.
Eurex’s new CCP service will go live on 22 November 2012.
The new CCP service “preserves the key features of the OTC market for both lending and borrowing counterparties. The clearing house as single counterparty to all trades will reduce counterparty risk exposure and eliminate the need for multiple credit evaluations,” said a statement from the company.
Eurex Clearing’s lending CCP will combine the trading capabilities of Eurex Repo’s SecLend Market and Pirum's Real-Time service, with the triparty collateral management services of Clearstream Banking Luxembourg and Euroclear Bank. The new offering also meets regulatory requirements, including Basel III and IOSCO proposals.
Thomas Book, member of the Eurex executive board and responsible for clearing, said: “Our new clearing offering for securities lending has been designed with support from key market participants who have committed to utilise the service to achieve a substantial reduction in capital allocation. We have completed testing of our offering and are ready to start a pilot phase with our early adopters.”
“Our set-up will enable customers to make use of their existing connectivity to these dynamic service providers for trade and collateral management and to take the benefit of substantial improvements to the current market structure by delivering significant capital and operational benefits to all participants,” added Book.
Eurex’s new CCP service will go live on 22 November 2012.
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