The Rise of the Central Counter Party (CCP) ... in Europe


THE RISE OF THE CENTRAL COUNTER PARTY (CCP) … IN EUROPE


… finally after years of the Global Financial Crisis (GFC) and the Dodd Frank Act, there is increasing central clearing in Europe for securities lending as well. The Deutche Burse Groups’ clearing  Eurex gears up with the help of Clearstream on some front. Eurex offers unique securities lending & borrowing (SLB) market with straight-through processing (STP) from trading to settlement and the integrated service of Eurex clearing as a central counterparty.  Interesting to note that SecFinex firm (owned back in the days by NYSE-Euronext ) was shut down in the US as there was not much posh yet to central clearing. Now, the European market is leading in implementation of CCPs to help financial institutions centralized clearing and potentially provide more transparency if needed (The electronic trading is not anonymous in the SecLend Market. However, Eurex Clearing becomes involved in the transaction as the CCP directly after it has been concluded.) On a daily basis Eurex provides information about which transactions or underlying securities are included in our CCP clearing service.

http://www.eurexrepo.com/repo-en/markets/seclend-market-ccp

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