Italy offers public sector securities lending
13 May 2015 Rome
Image: Shutterstock
The Bank of Italy has made securities purchased under the Public Sector Purchase Programme (PSPP) available for lending, as of 11 May 2015, under the governance of Clearstream Banking.
The securities lending service will include fail coverage activities in support of settlement (Automated Securities Lending and Borrowing Service, or ASL) and strategic market activities (Automated Securities Lending Plus, or ASLplus).
Lending of PSPP securities holdings is to take place on a cash neutral basis. This means that repo transactions against cash collateral will be accompanied by a fully offsetting reverse repo transaction for the same value date and, in principle, with the same counterparty.
A fixed spread fee of 10 basis points will be applied to ASLplus transactions, which is considerably cheaper that the European Central Bank’s current fee of 40 basis points.
The securities lending programme itself is governed by Clearstream Banking’s standard terms and conditions.
The Bank of Italy has stated that it may revise these parameters if necessary and will inform the markets via its website.
The securities lending service will include fail coverage activities in support of settlement (Automated Securities Lending and Borrowing Service, or ASL) and strategic market activities (Automated Securities Lending Plus, or ASLplus).
Lending of PSPP securities holdings is to take place on a cash neutral basis. This means that repo transactions against cash collateral will be accompanied by a fully offsetting reverse repo transaction for the same value date and, in principle, with the same counterparty.
A fixed spread fee of 10 basis points will be applied to ASLplus transactions, which is considerably cheaper that the European Central Bank’s current fee of 40 basis points.
The securities lending programme itself is governed by Clearstream Banking’s standard terms and conditions.
The Bank of Italy has stated that it may revise these parameters if necessary and will inform the markets via its website.
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