Deutsche Börse fuses its sec lending services
01 December 2015 Frankfurt
Image: Shutterstock
Clearstream, Eurex Repo and Eurex Clearing have combined their agency lending services to enhance Deutsche Börse Group’s overall securities lending programme.
The combined service, which is already available, offers customers greater capital efficiency and straight-through processing, according to Deutsche Börse.
Lenders may also be able to achieve higher returns as they can maximise the yield on their assets in a low-risk environment.
Clearstream is set to manage the transaction between the lenders and the borrowers as the agent lender and triparty collateral agent, via the Global Liquidity Hub.
Eurex Repo’s SecLend market will manage the trading venue through its GC Pooling client base, while Eurex Clearing will provide clearing services as the central counterparty (CCP) to both sides of the transaction.
“This new agency lending service via CCP offers lenders an additional source of revenue by reaching out to different borrowers compared to our well-established principal model ASLplus,” said Pascal Morosini, global head of global securities financing sales at Clearstream.
“Our joint agency lending service is perfectly suited to large, fixed income lenders who are looking for a secured and centrally cleared solution.”
Matthias Graulich, chief client officer of Eurex Clearing, added: “Eurex Clearing's innovative membership model allows Clearstream’s customers direct CCP access under our specific lender licence providing the basis for improved economics for lenders and borrowers by reducing capital cost.”
The combined service, which is already available, offers customers greater capital efficiency and straight-through processing, according to Deutsche Börse.
Lenders may also be able to achieve higher returns as they can maximise the yield on their assets in a low-risk environment.
Clearstream is set to manage the transaction between the lenders and the borrowers as the agent lender and triparty collateral agent, via the Global Liquidity Hub.
Eurex Repo’s SecLend market will manage the trading venue through its GC Pooling client base, while Eurex Clearing will provide clearing services as the central counterparty (CCP) to both sides of the transaction.
“This new agency lending service via CCP offers lenders an additional source of revenue by reaching out to different borrowers compared to our well-established principal model ASLplus,” said Pascal Morosini, global head of global securities financing sales at Clearstream.
“Our joint agency lending service is perfectly suited to large, fixed income lenders who are looking for a secured and centrally cleared solution.”
Matthias Graulich, chief client officer of Eurex Clearing, added: “Eurex Clearing's innovative membership model allows Clearstream’s customers direct CCP access under our specific lender licence providing the basis for improved economics for lenders and borrowers by reducing capital cost.”
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