SecFinex And EuroCCP To Launch CCP For UK Market

NYSE Euronext and DTCC have signed an agreement to launch a central counterparty for stock borrowing and lending in the UK through their European subsidiaries
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NYSE Euronext and DTCC have signed an agreement to launch a central counterparty for stock borrowing and lending in the UK through their European subsidiaries.

NYSE’s SexFinex Limited and DTCC’s EuroCCP will provide customers with the options of balance sheet netting, reduced collateral requirement, cost efficiencies, anonymity, single counterparty and multiple clearing options.

“We are extremely glad to have been selected by SecFinex to provide central counterparty services for securities lending and borrowing in the U.K., which is by far the largest market in Europe for this activity. The current turmoil in the financial services industry highlights the many benefits a central counterparty can bring in securities finance transactions. Besides protection from counterparty default, a central counterparty benefits firms by reducing capital requirement and back office operational work in managing collateral. Providing central counterparty services for securities borrowing and lending is a new, and we hope growing area for EuroCCP,” says Diana Chan, CEO of EuroCCP.

“We are delighted to partner with EuroCCP in this very important market innovation which serves to enhance securities borrowing & lending market efficiency, transparency and transaction activity. The use of a CCP has been widely anticipated for several years in the securities lending industry and the current credit crisis has highlighted the importance and desirability of the central counterparty value proposition. SecFinex wishes to be a force for constructive change and through this initiative is well positioned to play a pivotal role in the further development of the global securities finance market,” says Peter Fenichel, CEO of SexFinex.

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