Specific Lender
The Specific Lender trading permission enables securities lending transactions for loans versus non-cash collateral. The prerequisite is a collateral pledge model with a Triparty Collateral Agent. The restricted trading possibilities enables simplified admission requirements e.g. no requirements to pay a clearing fund contribution or margins. It cannot be combined with other Clearing Licenses (e.g. GC Pooling). However, an application as Specific Lender is possible in connection with a Select Invest trading permission.
The Specific Lender trading permission will provide buy side clients such as regulated financial service companies, insurance and reinsurance undertakings, pension funds or investment funds access to the SecLend Market. It supports the relationship between beneficial owners and agent lenders.
Key characteristics
- Electronic and bilateral trading using individual collateral schedules, four standardized fixed income and equity baskets which are similar to GC Pooling baskets or cash collateral (EUR/USD)
- Principal Lending or via an agent
- Automatic invoicing and comprehensive reporting
- Settlement of corporate actions
- Dividend payments
- Modifications (re-rates, recalls, returns)
- Loan securities: Equities from Germany, Switzerland, France, Belgium, Netherlands, ETFs, huge variety of international government, corporate and covered bonds
- Principal collateral: Cash (EUR/USD), international equities, ETFs, fixed income securities denominated in AUD, CAD, CHF, DEM, DKK, EUR, GBP, JPY, NOK, SEK, USD
Trading Hours
07:30 - 18:00 Frankfurt am Main time
Contract Size
Minimum trade size of one share respectively 1,000 nominal for bonds
Participation
Buy-side clients that are domiciled in the European Union, Switzerland and other selected countries can participate.
The following steps need to be taken:
- Apply to participate as Special SecLend Participant at Eurex Repo
- Set up web based access to the Eurex Repo trading system if trading does not take part via an agent
- Apply for a Specific Lender Clearing License
- Sign agreement with a Triparty Agent (pledge of collateral)
- Deliver multicurrency cash accounts of Clearstream Banking or Euroclear Bank
