EquiLend joins Eurex Clearing鈥檚 Lending CCP
16 September 2015 London
Image: Shutterstock
EquiLend has connected its securities lending platform to Eurex Clearing鈥檚 central counterparty (CCP) service.
The planned link, due to go live in March 2016, will allow EquiLend鈥檚 market participants to make use of their existing infrastructure to route transactions to Eurex Clearing鈥檚 Lending CCP for novation and downstream processing.
Brian Lamb, CEO of EquiLend, said: 鈥淭he securities finance industry realises the benefits of a CCP model more and more. With market participants now more open to the idea of utilising central counterparties as an additional tool in their trading activity, we felt the time was right to facilitate CCP access for our extensive client base.鈥�
鈥淲e are very excited to be able to give our clients additional choice on where and how and with whom they direct their business.鈥�
Matthias Graulich, chief client officer at Eurex Clearing, added: 鈥淲e are very pleased to work with EquiLend in our effort to bring the efficiency of Eurex Clearing鈥檚 Lending CCP to the securities lending market.鈥�
鈥淟everaging EquiLend鈥檚 existing market position and given the broad utilisation by its members will further enhance the attractiveness of our Lending CCP and be mutually beneficial to our clients and other connected markets.鈥�
The Lending CCP, which launched in November 2012, reduces counterparty risk exposure and eliminates the need for multiple credit evaluations. Users can achieve a significant reduction in capital allocation associated with bilateral securities finance transactions.
The service covers loans in equities and exchange-traded funds in Europe as well as fixed income securities.
BNY Mellon and State Street signed up to the Lending CCP in January, as did Natixis. Morgan Stanley joined the service in late 2014.
The planned link, due to go live in March 2016, will allow EquiLend鈥檚 market participants to make use of their existing infrastructure to route transactions to Eurex Clearing鈥檚 Lending CCP for novation and downstream processing.
Brian Lamb, CEO of EquiLend, said: 鈥淭he securities finance industry realises the benefits of a CCP model more and more. With market participants now more open to the idea of utilising central counterparties as an additional tool in their trading activity, we felt the time was right to facilitate CCP access for our extensive client base.鈥�
鈥淲e are very excited to be able to give our clients additional choice on where and how and with whom they direct their business.鈥�
Matthias Graulich, chief client officer at Eurex Clearing, added: 鈥淲e are very pleased to work with EquiLend in our effort to bring the efficiency of Eurex Clearing鈥檚 Lending CCP to the securities lending market.鈥�
鈥淟everaging EquiLend鈥檚 existing market position and given the broad utilisation by its members will further enhance the attractiveness of our Lending CCP and be mutually beneficial to our clients and other connected markets.鈥�
The Lending CCP, which launched in November 2012, reduces counterparty risk exposure and eliminates the need for multiple credit evaluations. Users can achieve a significant reduction in capital allocation associated with bilateral securities finance transactions.
The service covers loans in equities and exchange-traded funds in Europe as well as fixed income securities.
BNY Mellon and State Street signed up to the Lending CCP in January, as did Natixis. Morgan Stanley joined the service in late 2014.
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