PGGM goes live with Eurex Clearing’s securities lending CCP
18 June 2018 Frankfurt
Image: Shutterstock
PGGM has gone live with Eurex Clearing’s securities lending central counterparty (CCP).
PGGM is in the process of finalising their admission as a direct participant of Eurex Clearing’s securities lending CCP and is the first buy-side client to start transactions with Morgan Stanley using the lending CCP’s specific lender license.
PGGM and Morgan Stanley are currently in the final stages of simulation testing with a view to becoming the first to use EquiLend Clearing Services’ (ECS) full connectivity offering to access Eurex Clearing’s lending CCP. The service will enable them to transmit trades agreed via EquiLend to the lending CCP.
Eurex Clearing’s lending CCP covers loans in global fixed-income securities as well as equities and exchange-traded funds in Europe.
Roelof van der Struik, investment manager of treasury trading and commodities at PGGM, said: “At PGGM, we are pleased to see our strategic initiative come to fruition with the help of Morgan Stanley and EquiLend for our trading connectivity to Eurex Clearing.”
He added: “The accompanying effort by BNY Mellon as global custodian and by Euroclear as tri-party collateral agent, have additionally contributed to this innovative approach that helps deliver cost and operational efficiencies for our securities lending activities.”
Susan O’Flynn, managing director for Europe, the Middle East and Africa and head of bank resource management and global head of clearing and collateral optimisation at Morgan Stanley commented: “This initiative with PGGM demonstrates Morgan Stanley’s support of central clearing solutions for securities finance transactions, such as Eurex Clearing’s CCP model, as these enable us to both build our existing and expand new client relationships and deliver best in class service with risk, resource and operational efficiencies.”
Brian Lamb, CEO of EquiLend, said: “Our service is the only solution facilitating the seamless transmission of a transaction at the point of trade straight through to Eurex Clearing’s lending CCP.”
He added: “The dynamic ECS connection to Eurex Clearing allows Morgan Stanley and PGGM to leverage a completely integrated CCP model for securities lending and benefit from the resulting capital and operational efficiencies.”
Marcel Naas, global head of funding and financing at Deutsche Börse Group, commented: “We are very pleased that PGGM and Morgan Stanley are in the final stages of completing the admission and simulation testing in order to start transacting by utilising EquiLend to access our lending CCP offering.”
He added: “The acceptance and growth of the lending CCP is proven by the committed partnership shown by our clients and leading market infrastructure providers.”
Eric Mueller, CEO Eurex Clearing, said: “It is a significant achievement to announce PGGM’s deployment of Eurex Clearing’s lending CCP.”
He added: “The focus on CCP solutions continues to increase, driven by the need for cost and operational efficiencies and we anticipate greater utilisation of our services as the securities finance industry looks to realise the added benefits of a CCP model.”
Allison Levy, director of Asset Servicing Global Product Management, commented: “BNYMellon are pleased to be the first custodian able to service centrally cleared lending, working in partnership with Eurex and Morgan Stanley to support our client PGGM. We are keen to work with our clients to understand their changing needs and working with the market to develop alternative solutions.”
PGGM is in the process of finalising their admission as a direct participant of Eurex Clearing’s securities lending CCP and is the first buy-side client to start transactions with Morgan Stanley using the lending CCP’s specific lender license.
PGGM and Morgan Stanley are currently in the final stages of simulation testing with a view to becoming the first to use EquiLend Clearing Services’ (ECS) full connectivity offering to access Eurex Clearing’s lending CCP. The service will enable them to transmit trades agreed via EquiLend to the lending CCP.
Eurex Clearing’s lending CCP covers loans in global fixed-income securities as well as equities and exchange-traded funds in Europe.
Roelof van der Struik, investment manager of treasury trading and commodities at PGGM, said: “At PGGM, we are pleased to see our strategic initiative come to fruition with the help of Morgan Stanley and EquiLend for our trading connectivity to Eurex Clearing.”
He added: “The accompanying effort by BNY Mellon as global custodian and by Euroclear as tri-party collateral agent, have additionally contributed to this innovative approach that helps deliver cost and operational efficiencies for our securities lending activities.”
Susan O’Flynn, managing director for Europe, the Middle East and Africa and head of bank resource management and global head of clearing and collateral optimisation at Morgan Stanley commented: “This initiative with PGGM demonstrates Morgan Stanley’s support of central clearing solutions for securities finance transactions, such as Eurex Clearing’s CCP model, as these enable us to both build our existing and expand new client relationships and deliver best in class service with risk, resource and operational efficiencies.”
Brian Lamb, CEO of EquiLend, said: “Our service is the only solution facilitating the seamless transmission of a transaction at the point of trade straight through to Eurex Clearing’s lending CCP.”
He added: “The dynamic ECS connection to Eurex Clearing allows Morgan Stanley and PGGM to leverage a completely integrated CCP model for securities lending and benefit from the resulting capital and operational efficiencies.”
Marcel Naas, global head of funding and financing at Deutsche Börse Group, commented: “We are very pleased that PGGM and Morgan Stanley are in the final stages of completing the admission and simulation testing in order to start transacting by utilising EquiLend to access our lending CCP offering.”
He added: “The acceptance and growth of the lending CCP is proven by the committed partnership shown by our clients and leading market infrastructure providers.”
Eric Mueller, CEO Eurex Clearing, said: “It is a significant achievement to announce PGGM’s deployment of Eurex Clearing’s lending CCP.”
He added: “The focus on CCP solutions continues to increase, driven by the need for cost and operational efficiencies and we anticipate greater utilisation of our services as the securities finance industry looks to realise the added benefits of a CCP model.”
Allison Levy, director of Asset Servicing Global Product Management, commented: “BNYMellon are pleased to be the first custodian able to service centrally cleared lending, working in partnership with Eurex and Morgan Stanley to support our client PGGM. We are keen to work with our clients to understand their changing needs and working with the market to develop alternative solutions.”
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