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SecLend Market

SecLend Market

We offer a 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. 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.

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Participation

Advantages for Participation

  • Discretionary market visibility, increased trading speed, reduced operational and systemic risk, reduced reconciliation effort, corporate action service included
  • Reduction of counterparty risk exposure
  • Elimination of multiple credit evaluations
  • Significant reduction in capital allocation (Basel II / Basel III)
  • Access to all other Eurex Repo securities funding and financing markets within the same infrastructure

Participation Requirements

A Participation Authorization can be granted for the Euro Repo, GC Pooling Market and/or SecLend Market with CCP.
If the customer is already Eurex Repo and/or GC Pooling participant, the additional registration for SecLend Market with CCP can take place under the prerequisite that one of the following Clearing Licenses of Eurex Clearing was granted:

  • General Clearing Member Securities Lending (GCM)
  • Direct Clearing Member Securities Lending (DCM)
  • Specific Lender License (only pledge of collateral securities and only if no other „Full Clearing Member License“ has been granted)

"Full Clearing Member” License must be fulfilled for a GCM/DCM Securities Lending: Liable Equity Capital Requirements of € 200 Mio (GCM) or € 50 Mio (DCM).

Admission Prerequisites Specific Lender License

  • The enterprise must be licensed as a

    • Credit Institution
    • Financial Institution
    • or as an USCITS (undertaking for collective investments in transferable securities) or management company thereof)
  • In order to ensure the orderly settlement of the Securities Lending Transactions the enterprise must have entered into a tri-party agreement concerning the delivery of non-cash principal collateral with Eurex Clearing AG and a Tri-Party Collateral Agent.

Holder of a Specific Lender License are exempted from the following:

  • Proof of liable equity capital
  • Contribution to Margin
  • Contribution to the Clearing Fund

No trader exam required; individual GUI training is offered.

All Eurex Repo participants are classified as professional customer according to § 31a part 2 WpHG (Wertpapierhandelsgesetz, Securities Trade Act).

 

Landesbank Baden-Württemberg  joined the SecLend Market on July 10, 2018

 
 
 

For more information

Eurex Repo | Sales & Relationship Management

Frankfurt/London/Paris/Zurich

T +49 (0)69 2 11-1 40 40

 
 
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