Eurex Clearing and PGGM work together on CCP model for Securities Lending

Release date: 12 Sep 2017 | Eurex Clearing

Eurex Clearing and PGGM work together on CCP model for Securities Lending

First buy-side client to utilise the Lending CCP’s Specific Lender License

Eurex Clearing, Europe’s leading clearing house and part of Deutsche Börse Group, has announced that PGGM, the cooperative Dutch pension fund service provider offering institutional clients asset management, pension fund management, policy advice and management support, is the first buy-side client to become a direct participant of Eurex Clearing’s Securities Lending central counterparty (CCP).

The development and implementation of a centrally cleared securities lending solution is part of Deutsche Börse Group’s strategy to incorporate new and innovative offerings that assist members to increase capital and operational efficiencies by maintaining and supporting the bilateral, relationship driven characteristics of the securities lending market.

Roelof van der Struik, Investment Manager Treasury Trading & Commodities at PGGM, said: “At PGGM, we believe by connecting to Eurex Clearing, using the full capabilities of EquiLend, the CCP model enables new stock lending structures and business opportunities for beneficial owners as well as helping to manage the rising burden of balance sheet regulation and costs for the securities lending market.”

Brian Lamb, CEO of EquiLend, said: “We are pleased that PGGM has selected EquiLend to provide full connectivity services to Eurex Clearing’s Lending CCP and welcome them as a client. The focus on CCP solutions continues to increase, driven by the need for cost and operational efficiencies. We anticipate greater utilisation of our link to Eurex as the securities finance industry looks to realise the benefits of a CCP model.”

Marcel Naas, Global Head of Funding & Financing at Deutsche Börse Group, added: “We are very pleased to welcome PGGM in our effort to further broaden the reach of our offering for the securities lending market to buy-side clients. The usage by its members will further enhance the attractiveness of our Lending CCP and be mutually beneficial to our clients and other connected markets across asset-classes.”

Eurex Clearing’s Lending CCP covers loans in equities and exchange-traded funds in Europe as well as fixed income securities. Eurex Clearing’s Lending CCP has some of the largest providers of financial services to institutional investors and securities lending agents as strategic partners. The direct CCP access for beneficial owners via the Specific Lender License, provides significant benefits to market participants. It preserves the relationship driven business structure and at the same time delivers the capital efficiency and safety associated with central clearing.

The Lending CCP reduces counterparty risk exposure and eliminates the need for multiple credit evaluations. As part of Deutsche Börse, Eurex Clearing is the only infrastructure provider with an integrated clearing offering across derivatives, equities, securities lending and repo transactions.

About Eurex Clearing
Eurex Clearing, part of Deutsche Börse Group, is one of the leading central counterparties globally – assuring the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection. Eurex Clearing provides fully automated, straight-through post-trade services for derivatives, equities, bonds and secured funding & securities financing, as well as industry-leading risk management technologies. Eurex Clearing serves 176 clearing members in 17 countries, managing a collateral pool of around EUR 50 billion and processing gross risks valued approx. EUR 16 trillion every month.

About PGGM
PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On June 30, 2017 PGGM had EUR 206 billion in assets under management. The PGGM cooperative has approximately 725,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops future solutions by linking together pension, care, housing and work.

About EquiLend
EquiLend is a leading provider of trading and post-trade services for the securities finance industry with offices in New York, London, Hong Kong and Toronto. EquiLend is owned by BlackRock, Credit Suisse, Goldman Sachs, J.P. Morgan, Bank of America Merrill Lynch, Morgan Stanley, Northern Trust, State Street and UBS. Used by securities borrowers and lenders globally, the EquiLend platform (for equities) and BondLend platform (for fixed income) automate formerly manual trading and post-trade processes in the securities finance industry. DataLend provides performance reporting and aggregated, anonymized, cleansed and standardized securities finance data covering all asset classes, regions and markets globally. EquiLend Clearing Services operates the ECS Middle Office and the ECS Gateway, which offer CCP services and connectivity.

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