EquiLend and Eurex Clearing Team Up For CCP Lending Service

Frankfurt-based Eurex Clearing has connected to EquiLend’s securities lending platform, in a bid to boost securities lending activity at the clearing house.

The planned link to the Eurex Clearing CCP Lending Service, due to go live in March 2016, will give EquiLend’s clients the ability to route their trade messages seamlessly from the post-trade platform on to Eurex for their clearing services.

The service will cover loans in equities and ETFs in Europe, as well as fixed-income securities.

“The securities finance industry realizes the benefits of a CCP model more and more. With market participants now more open to the idea of utilizing 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,” says Brian Lamb, CEO, Equilend.

The Lending CCP reduces counterparty risk exposure and eliminates the need for multiple credit evaluations, said a joint press release. Users can achieve a significant reduction in capital allocation associated with bilateral securities finance transactions.

“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,” adds Matthias Graulich, chief client officer of Eurex Clearing.