Principles

Eurex Repo offers a collateralization service with end to end processing for collateral secured instruments (COSI) listed on Scoach Switzerland. Certificates are bearer debt instruments (claims). The investor who purchases a certificate assumes a default risk that varies according to the creditworthiness of the issuer. The insolvency of the issuer could result in a total loss for the investor. In order to minimize this risk, Eurex Zürich AG (Collateralization and SecLend Market) is offering a service for the collateralization of certificates in collaboration with SIX Swiss Exchange and SIX SIS AG¹.

Fully integrated value chain

The collateralization service is being offered by SIX Swiss Exchange as Collateral Taker and build upon the tried-and-trusted securities lending infrastructure of Eurex Zürich AG (collateralization and SecLend Market) and SIX SIS AG¹. Straight Through Processing (STP) from trading to settlement. Trader can monitor collateralization positions in real-time at all times, with no manual intervention required.

Advantages for the participant

• Access to an efficient and automated collateralization market for financing products (e.g. collateralized structured instruments)
• Increase of trading & settlement efficiency (speed, security, quality and quantity)
• Discretionary market visibility, trading speed, low probability of systemic fails, reduced reconcialiation effort, corporate action service included
• Financing product and its collateral are linked throughout lifetime of financing product
• No need for back office capacity adjustments due to fluctuating volumes

Please click here for further information on the COSI service.

¹ SIX SIS AG is a legal entity of SIX Securities Services