EquiLend, a securities finance trading and post-trade service provider, and Eurex Clearing, have agreed to connect EquiLend’s securities lending platform to Eurex Clearing’s Lending CCP service.
The planned link, due to go live in March 2016, will allow EquiLend’s market participants to make use of their existing infrastructure to route transactions to Eurex Clearing’s Lending CCP for innovation and downstream processing.
Brian Lamb, CEO of EquiLend, says: “The 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. We are very excited to be able to give our clients additional choice on where and how and with whom they direct their business.”
Matthias Graulich (pictured), Chief Client Officer of Eurex Clearing, says: “We are very pleased to work with EquiLend in our effort to bring the efficiency of Eurex Clearing’s Lending CCP to the securities lending market. Leveraging EquiLend’s 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.”
The Lending CCP is based on Eurex Clearing’s established infrastructure and industry-leading risk management standards. The clearing house, as a single counterparty to all trades, 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 is covering loans in equities and ETFs in Europe as well as fixed-income securities.