Cboe Clear Europe has added ABN Amro as an active participant on its securities financing transactions (SFT) clearing service, which launched in March. The bank had previously signed on as a borrower participant, reports Globaltrading.net
Three months into operation, the clearing house is looking to broaden its offering. “Phase one has always been European cash equities, but that was not the entire scope of Cboe’s product,” said Jan Treuren, SFT product lead at Cboe Clear Europe. “We have plans to roll out fixed income, cash financing trades, and non-European equities as part of loan securities.”
The service is designed to help firms navigate increasing regulatory pressures. “Upcoming and already implemented regulations are looking at capital requirements, making bilateral transactions in some cases more capital intensive than cleared transactions,” Treuren explained. “In a way, the regulators are incentivising the community to trade and clear via a licensed CCP, which has a reduced capital appetite.”
Streamline
Cboe’s SFT clearing process is designed to be fully automated, with a sequence of pre-trade steps tailored to different client types. Developed in collaboration with lenders and borrowers, the system aims to streamline transactions and reduce operational risk.
For more on Cboe Clear Europe’s launch into the SFT clearing space, read our earlier coverage here.
