Automated Securities Lending and Borrowing service (ASL)

ASL lies at the heart of Clearstream’s settlement engine and acts as lender of last resort, preventing failures and enhancing the settlement efficiency through automated loans. This is a unique service that only the ICSD or CSD could offer, given that the fails lending product is so highly integrated into the settlement process.

With just one contract, borrowers gain access to a large pool of undisclosed lenders, speeding the reception of the proceeds from counterparties. Once the securities are on the account, the loan closes. The ASL Guarantee reduces the counterparty risk for lenders. Lenders can advise Clearstream of the positions available for lending via the lender download facility. This is of particular use to lenders with mixed assets.

In addition to fully automated services, Clearstream also provides Case-by-Case securities lending and borrowing. Customers enjoy complete control as they lend and borrow in accordance with their own risk profile and other strategies.