AMSTERDAM and LONDON, June 14,
2023 /PRNewswire/ -- Cboe Global Markets Inc. (Cboe: CBOE),
the world's leading derivatives and securities exchange network,
today announced that Cboe Clear Europe, its Amsterdam-based clearing house, is planning to
introduce a Central Counterparty (CCP) clearing service for
securities financing transactions (SFT) in Q3 2024, subject to
regulatory approvals.
This new service is expected to introduce matching, CCP
clearing, settlement and post-trade lifecycle management for SFT
transactions in European cash equities and ETFs, for (agent)
lenders and borrowers, with settlement taking place in 19 European
Central Securities Depositories (CSDs). As the only pan-European
CCP offering these consolidated services for SFTs in European cash
equities and ETFs, Cboe Clear Europe is expected to help to bring
improved capital efficiencies, enhanced risk management and
streamlined operational procedures to this market.
Vikesh Patel, President, Cboe
Clear Europe, said: "We are delighted to bring a CCP clearing
service to Europe's SFT market,
helping market participants improve their capital and operational
efficiencies in relation to these products. It is a natural
progression for our business, another important step in our mission
to become Europe's leading
multi-asset class clearing house and further demonstrates our
commitment to developing innovative client-driven solutions. We are
excited to be working with leading firms in the SFT market on this
important initiative."
European SFTs primarily occur on a bilateral basis and
are not cleared. However, new regulations including the Central
Securities Depositories Regulation (CSDR), Securities Financing
Transactions Regulation (SFTR) and planned Basel IV implementation,
are resulting in market participants having to
manage increased capital demands and additional
operational inefficiencies that increase the costs of bilateral
SFTs and may lead to a reduced capacity and appetite to borrow or
lend. By offering access to a CCP clearing and settlement
service for SFTs, Cboe Clear Europe is expected to help
clients navigate these new rules, reduce their capital burdens
associated with bilateral SFTs and achieve operational advantages.
These include greater settlement efficiency, the elimination of
agent lender disclosures, and improved practices around fees
management, corporate actions, and post-trade lifecycle
processing.
Cboe Clear Europe has secured the support of a broad range of
key market participants, including banks, clearing firms, asset
managers and custodians, who are expected to support the launch of
this service.
- Participant Agent Lenders include BNY Mellon
and Citi.
- Participant Borrowers include ABN AMRO Clearing Bank, Barclays,
Citigroup Global Markets Limited, J.P. Morgan and Goldman
Sachs.
As a leading pan-European equities clearing house, Cboe Clear
Europe currently offers clearing services to 47 trading venues. The
company enables Clearing Participants to manage their counterparty
credit risk and also to maximise operational efficiencies through
automated processing and the provision of netting opportunities. It
diversified into equity derivatives clearing in 2021 to support the
launch of Cboe Europe Derivatives (CEDX), Cboe's pan-European
equity derivatives exchange.
Cboe Clear Europe operates as an independent subsidiary of the
Cboe group, retaining a separate governance structure and
management team. It is headquartered in Amsterdam and regulated by De Nederlandsche
Bank and by Autoriteit Financiële Markten. Further information on
the company and its services can be found here:
clear.cboe.com/europe.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), the world's leading
derivatives and securities exchange network, delivers cutting-edge
trading, clearing and investment solutions to people around the
world. Cboe provides trading solutions and products in multiple
asset classes, including equities, derivatives, FX, and digital
assets, across North America,
Europe and Asia Pacific. Above all, we are committed to
building a trusted, inclusive global marketplace that enables
people to pursue a sustainable financial future. To learn more
about the Exchange for the World Stage, visit
www.cboe.com.
Media
Contacts
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Analyst
Contact
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Tim
Cave
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Angela
Tu
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Kenneth Hill,
CFA
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+44 (0) 7593 506
719
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+1-646-856-8734
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+1-312-786-7559
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tcave@cboe.com
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atu@cboe.com
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khill@cboe.com
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