Sep 22, 2015
Eurex Clearing
Spotlight: Advantages of CCP services for Beneficial Owners
At this year’s IMN Beneficial Owners' conference, Gerard Denham and Jonathan Lombardo, both Senior Vice Presidents Clients & Markets at Eurex Clearing, hosted an interactive workshop dedicated to Beneficial Owners. Some 40 Beneficial Owners from across Europe attended to learn more on how to take advantage from the Lending CCP, Eurex Clearing’s unique CCP offering for securities lending transactions.
‘'Consider the CCP as just another borrowing counterparty where the actual trade itself is not affected'', said Jonathan Lombardo. Gerard Denham added: “While the Lending CCP offers superior risk mitigation capabilities, and can be used as an effective tool to further increase capital efficiencies for market participants, it is important to know that it does not affect the existing relationships with your agent lenders.''
The advantages for Beneficial Owners using a CCP service for the securities lending market:
- Existing relationships and structure with Agent Lenders are maintained
- Beneficial Owner remains as Principal for securities lending transactions
- Enhanced default management protection by the CCP
- Superior CCP Risk Management approved by regulatory authorities
- Re-use of existing infrastructure to allow for a wider distribution of counterparts
- Flexible collateral schedules allowing for optimization of collateral
Gerard Denham
SVP Fixed Income Sales | Derivatives Funding & Financing
T +44-207-862-76 34
Jonathan Lombardo
SVP Fixed Income Sales | Derivatives Funding & Financing
T +44-207-862-75 59
