Securities Lending and Borrowing Service: New option for lenders

28.06.2022

Clearstream Banking1 informs customers that, in order to provide more granularity to lenders for the management of their balances and lending activity, effective

4 July 2022

a new option will be offered to lenders participating in its lending programs and prior to attempting Clearstream Banking’s automated lender substitution or initiating the automated recall process.

Current options allow triggering the above process based either on matched instructions or on unmatched delivery instructions from the lender or unmatched receipt instruction from its counterparty.

The new option will allow the process to be triggered based on the delivery instruction from the lender ONLY, being matched or unmatched and without considering any receipt from lender’s counterparty.

The Lender Profile Authorisation form has been amended accordingly and now offers this alternative option2 to existing and new lenders:

  • Include Lender substitutions/recall ONLY on matched delivery instructions (existing option);
  • Include Lender substitutions/recall ONLY on matched/unmatched delivery instructions (new option).

Further information

For further information, customers may contact the Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.

2. If none of the below is selected in LPA, the default option applies. In such case, lender substitutions/recalls are triggered based on unmatched delivery from the lender or unmatched receipt from its counterparty.