Deutsche Börse Group subsidiaries Eurex Clearing and Clearstream Banking Luxembourg have announced plans to introduce a central counterparty service (CCP) for securities lending in Q2 2009.
Under the plans, Eurex Clearing will act as the clearinghouse for Clearstream's ASLplus securities lending programme, which has been operational for three years.
Securities lending customers will benefit from netting on an anonymous basis, balance sheet relief and mitigation of counterparty risk, say the partners.
Stefan Lepp, member of the Clearstream Board and head of global securities financing, comments: "The CCP will help restore confidence in the lending industry and lead to a new quality of liquidity."
He says the joint offering emphasises the advantages of Deutsche Börse Group's vertically integrated business model. "We can offer a complete service package from a single source," says Lepp.