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06 November 2012

Hedgeweek: Eurex Clearing to launch central clearing service for bilateral securities lending market


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Eurex Clearing is to go live with Europe's first central counterparty (CCP) service for the bilateral securities lending market on 22 November.


At the start, German and Swiss blue chip equities and exchange-traded funds (ETFs) will be available for pilot clients. This initial phase will allow clearing members to lay the necessary foundations for the alignment of their systems and processes, and extensively test the infrastructure to access this innovative CCP offering. Building on this, the product scope will be extended to include additional European markets for loans in equities, fixed income products (such as European government bonds, corporate and covered bonds) and further ETFs.

Eurex Clearing is the first clearing house to incorporate the special structure of the securities lending market into a proven and industry-accepted CCP model allowing cash and non-cash collateral as well as providing automated trade flow and loan lifecycle management. The lending CCP offers features such as a specific lender licence that enables beneficial owners to participate as clearing members of Eurex Clearing without any margin obligations.

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