PGGM to go live with Eurex Clearing’s securities lending central counterparty
Eurex Clearing, Europe’s leading clearing house and part of Deutsche Börse Group, recently announced that PGGM is in the process of finalising their admission as a direct participant of Eurex Clearing’s securities lending central counterparty (CCP).
This initiative additionally coordinated with BNY Mellon as PGGM’s global custodian and by using Euroclear as its tri-party collateral agent, to deliver cost and operational efficiencies along the entire flow-chain of securities lending and collateral
management activities.
Allison Levy, director of asset servicing global product management, commented: “BNY Mellon 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.”
Olivier Grimonpont, global head of collateral management and securities lending, Euroclear, said: “We are delighted that PGGM and Morgan Stanley have chosen our Collateral Highway to settle their securities lending activity cleared through Eurex Clearing.”
Grimonpont added: “This will result in a reduction of counterparty risk exposures and increase market efficiencies which will be beneficial to both borrowers and lenders.”
The acceptance and growth of the Lending CCP is proven by the committed partnership shown by and leading market participants.
PGGM and Morgan Stanley are the first to use EquiLend Clearing Services’ 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.
The direct CCP access for beneficial owners via the Specific Lender License provides significant benefits to market participants. It preserves the relationship driven business structure and at the same time delivers the capital efficiency and safety associated with central clearing.
Eurex Clearing’s Lending CCP covers loans in global fixed income securities as well as equities and exchange-traded funds in Europe. Eurex Clearing’s Lending CCP has some of the largest providers of financial services to institutional investors and securities lending agents as strategic partners.
The Lending CCP reduces counterparty risk exposure and eliminates the need for multiple credit evaluations.
As part of Deutsche Börse, Eurex Clearing is the only infrastructure provider with an integrated clearing offering across derivatives, equities, securities lending and repo transactions.
