Eurex Clearing will introduce a central counterparty (CCP) service for over-the-counter (OTC) securities lending transactions. Phased roll out of the new service, which will cover European markets for loans in equities, ETFs and fixed income securities, will commence in November 2011.
Lending participants will get specific member license, allowing beneficial owners to participate as clearing members of Eurex Clearing without any margin obligation. Through the new service, the clearing house as single counterparty to all trades will lower counterparty risk exposure and eliminate the need for multiple credit evaluations.
Click here for the release from Eurex Clearing.