Is 2015 the year that securities lending CCPs finally gain momentum? (Premium Content)

Businessman And Questions

The conversation on the new securities lending CCP model is changing – its not so much in the future tense anymore but is moving to the present. Our panel at IMN’s Beneficial Owner’s Conference in London yesterday cemented that fact. But how soon is too soon to actually expect securities lending CCPs, that allow beneficial owners to participate directly, to be regular fixtures in the market?

Read More

A big September for European securities finance events

conferenceSFMimage

We note seven events on securities finance coming up in Europe, starting with IMN’s Beneficial Owner event and ending with Collateral World, including two events of our own. This article offers a summary of where we will be, where we won’t be, and what attendees can expect. Then we wrap up the month by heading to SIBOS in Boston.

Read More

Beneficial owner direct access: a critical input for securities lending CCPs

eurex-clearing-logo

As securities lending CCPs gain momentum, a critical feature, perhaps the most important feature at this point, is their ability to accept beneficial owners as direct participants without having to post margin or contribute to the default fund. To paraphrase Bill Clinton’s 1992 campaign slogan, “its the beneficial owners, stupid.”

Read More

Liquidity, Leverage and Securities Lending CCPs

Securities lending CCPs are at the intersection of major changes to liquidity and leverage in financial markets. Aside from requirements for increasing bank capitalization, Basel III is introducing new liquidity metrics such as the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). These shake-ups have already begun to change relationships between borrowers and lenders in securities lending.
Eurex Clearing Logo

Read More

Why beneficial owners have to start caring about securities lending CCPs

Beneficial owners are in a tough spot with securities lending CCPs. For years they have thought that CCPs were unattractive – loss of counterparty control, uncertain operations and too much margin were deal killers. Agent lenders were generally supportive of this view. But the market has fundamentally changed due to regulations, and that means that old ways of thinking are no longer sound for a successful lending organization. We look at five interrelated areas where beneficial owners should review their approach to CCPs: distribution, beneficial owner costs, agent lender costs, borrower costs and transactional pricing.
Eurex Clearing Logo

Read More