Morgan Stanley to join Eurex Clearing CCP
14 October 2014 London
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Morgan Stanley is to become a clearing member of Eurex Clearing’s Lending Central Counterparty (CCP). They aim to finalise the process by the end of October.
“Morgan Stanley is supportive of CCP solutions for securities lending such as the Eurex Clearing model as it allows us to preserve our client relationships and deliver best execution with risk, re-source and operational efficiencies,” said Susan O’Flynn, managing director and global head of CCP strategy and optimisation for Morgan Stanley.
“Tiered membership plays a critical part in facilitating buy-side participation through different forms such as the specific lender licence.”
Eurex Clearing’s Lending CCP was launched in November 2012. The current product scope includes equities from Belgium, France, Germany, the Netherlands and Switzerland, as well as a range of international fixed-income instruments and exchange-traded funds.
The clearing service reduces counterparty risk and provides significant cost benefits to market participants with increasing capital requirements for bilateral exposures.
Four clearing members have already been admitted to the service and have cleared their first transactions. Further market participants are expected to join soon.
Securities lending transactions from Eurex Repo’s SecLend Market or via Pirum’s CCP Gateway can be cleared by Eurex Clearing.
The service is integrated with two triparty collateral agents, Clearstream Banking Luxembourg and Euroclear Bank.
“Morgan Stanley is supportive of CCP solutions for securities lending such as the Eurex Clearing model as it allows us to preserve our client relationships and deliver best execution with risk, re-source and operational efficiencies,” said Susan O’Flynn, managing director and global head of CCP strategy and optimisation for Morgan Stanley.
“Tiered membership plays a critical part in facilitating buy-side participation through different forms such as the specific lender licence.”
Eurex Clearing’s Lending CCP was launched in November 2012. The current product scope includes equities from Belgium, France, Germany, the Netherlands and Switzerland, as well as a range of international fixed-income instruments and exchange-traded funds.
The clearing service reduces counterparty risk and provides significant cost benefits to market participants with increasing capital requirements for bilateral exposures.
Four clearing members have already been admitted to the service and have cleared their first transactions. Further market participants are expected to join soon.
Securities lending transactions from Eurex Repo’s SecLend Market or via Pirum’s CCP Gateway can be cleared by Eurex Clearing.
The service is integrated with two triparty collateral agents, Clearstream Banking Luxembourg and Euroclear Bank.
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