Bank of America and State Street will support Cboe Clear Europe’s clearing service for securities financing.
Welsh, Carson, Anderson & Stowe is buying a majority stake in the technology provider for securities finance.
The front-to-back securities borrowing and lending platform is fast, transparent and Shariah-compliant.
Equity SFTs will have straight-through processing to National Securities Clearance Corporation’s CCP.
European securities financing transactions are bilateral but regulatory capital demands are increasing.
Members can reduce their capital and balance sheet usage by novating their lending and borrowing activity.
Reporting obligations apply to investment funds, pensions funds and (re-)insurance undertakings.
Markets could benefit from greater harmonization in documentation, post-trade processing and automation.
The delay will assist market participants in focusing on post-COVID-19 priorities.
