Friday 24th October 2014
slib33
FRIDAY TICKER: OCTOBER 24th 2014: Standard Life has signed a memorandum of understanding with Industrial and Commercial Bank of China aimed at building partnerships around savings and investment solutions - A research report has found Australia to be one of the world’s most expensive developed markets to clear and settle equities - BNP Paribas Securities Services has launched an outsourcing service for AIFMD reporting - Ratings agency Standard & Poor's says it sees the beginnings of a new phase in the lingering eurozone crisis, where the worst may be over, but the difficult job of tending to unfinished business lies ahead.

New sec lending trading platform picks Eurex Clearing as CCP

Monday, 23 September 2013
New sec lending trading platform picks Eurex Clearing as CCP Eurex Clearing has been chosen to provide a central counterparty (CCP) service to a new electronic trading marketplace for stock lending transactions.  http://www.ftseglobalmarkets.com/

Eurex Clearing has been chosen to provide a central counterparty (CCP) service to a new electronic trading marketplace for stock lending transactions. 

Set to launch later this year, the new platform dubbed SL-x, will provide automated matching, negotiated trades and CCP access following the link-up with Eurex.

Traditionally, the sec lending market has been an OTC market. However as new regulatory initiatives, including Basel III, aim to reduce systemic market risk in the global financial system, the central clearing of OTC transactions is being encouraged. 



Eurex Clearing will now handle the clearing for all borrowing and lending transactions when SL-x launches in 17 European equity markets in this year’s fourth quarter.

At the outset, Eurex Clearing will offer central clearing for SL-x’s borrowing and lending transactions in Belgian, Dutch, French, German and Swiss stocks. In these initial five markets SL-x’s platform aims to include approximately 2,000 stocks and Exchange Traded Funds that represent over 90% of these markets’ stock on loan.

Eurex Clearing’s Lending CCP started in November 2012 and covers equities, fixed income, and ETFs. Since then, it has attracted the commitment of major market participants. Both Eurex and SL-x will work on the extension of the CCP service to other major European equity markets.

“We are very pleased to further expand distribution for the Lending CCP by working with SL-x. Our Lending CCP is widely recognized as industry leading and the first to preserve the special structure of the lending market. It helps banks to reduce the amount of capital they require to run their SBL businesses, enables them to improve operational efficiency, and reduces counterparty credit risk”, says Thomas Book, chief executive officer of Eurex Clearing.

SL-x’s chief executive officer Peter Fenichel adds: “We are delighted that Eurex Clearing will be able to offer our clients central clearing from day one of our launch later this year. This agreement is an important step for both businesses on the way to providing CCP-backed SBL transactions.”

Related News

Related Articles

Related Videos

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP

White Paper

Seeking Optimal ETF Execution in Electronic Markets

Seeking Optimal ETF Execution in Electronic Markets

 
pdf Download PDF View all Whitepapers