This week, Cboe Clear Europe has launched its first central clearing service for European Securities Financing Transactions (SFTs) in cash equities and exchange-traded funds (ETFs).
Cboe Clear Europe Launches Central Clearing for Securities Financing Transactions
The move is aimed at enhancing capital efficiency and post-trade processing.
The first trades cleared under the new service involved Natixis Corporate & Investment Banking as a Principal Lender and JP Morgan as a Borrower, according to the firm.
Cboe explained that the service introduces a centrally cleared model for SFTs, replacing the traditional bilateral process and supporting the growth of securities lending.
“We’re delighted to extend our clearing capabilities with this transformative service for European SFTs,” said Vikesh Patel, President of Cboe Clear Europe. “This launch responds to strong client demand for a clearing solution to help improve the capital efficiencies associated with stock borrowing and lending activities.”
The platform, supported by BNY and JP Morgan as Tri-Party Collateral Agents, is expected to help market participants navigate regulatory changes under CSDR, SFTR, and Basel IV.
Gesa Johannsen of BNY noted the importance of central clearing in enhancing capital efficiency and funding market resilience, while Grégoire Froehlich of Natixis highlighted reduced operational complexities.
Cboe Clear Europe plans to expand its SFT clearing services across other asset classes and regions, positioning itself as a leading multi-asset class clearing house in Europe.
