The Bulgarian Stock Exchange (BSE) and the Central Depository of Bulgaria have launched a new platform for borrowing financial instruments.

This new securities lending platform provides an integrated service enabling investors to lend or borrow financial instruments listed on the primary indices of the Sofia bourse for specified periods. The BSE states that the initiative is designed to enhance the liquidity of Bulgaria’s capital market. Borrowed securities are backed by cash collateral, with their management supervised by the Central Depository.

“Our aim is to mitigate the risk associated with borrowing financial instruments by using the trusted infrastructure of the Stock Exchange and Central Depository. Secured securities borrowing is closely linked to the facilitation of short sales and is foundational for developing a derivatives market,” stated Manyu Moravenov, CEO of BSE.

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Additionally, the new platform will operate using the infrastructure of the Deutsche Börse’s T7 trading system, according to the BSE.