Eurex Extends Securities Lending CCP Coverage And Scope

Eurex Clearing has announced greater market coverage and extended scope of its securities lending CCP.

As of early June, Eurex Clearing’s CCP service for the securities lending industry now covers blue chip equities from Belgium, France and the Netherlands, in addition to the original German and Swiss equities, fixed income securities and ETFs. The new eligible loan securities will be settled in the Euroclear France, Netherland or Belgium CSDs, depending on the home market.

The company has also introduced a processing solution for voluntary corporate actions that occur in respect of loaned securities during the term of the relevant securities lending transaction. With this new processing solution, lenders and borrowers will be able to arrange bilaterally for all types of voluntary corporate actions, including the sale or execution of rights, while keeping the loan within the CCP.

Eurex Clearing maintains that it offers beneficial owners the opportunity to continue their lending program as it is, keeping their relationship with their agent lenders and allowing the implementation of central clearing “in a market-led and coordinated way ahead of any particular regulatory mandate in the future,” according to the announcement.