Securities lending and borrowing
To ensure that trades settle when expected, customers can call on automated securities lending. This reduces the cost of failures, makes positions easier to predict and helps customers manage cash requirements with more certainty.
In addition to its automated services, Clearstream provides an actively managed lending service that uses its market knowledge to increase trading opportunities for borrowers.
Lenders benefit from some of the best available returns, leaving the logistics to Clearstream, so customers are freed from the daily administration associated with loans.
Operational services include:
- Checking the eligibility and sufficiency of collateral
- Daily mark to market
- Monitoring margin excesses and deficits
- Monitoring and managing corporate actions
- Collecting income.
These services bridge liquidity gaps by preventing settlement failure while providing a flexible source of securities to maximise trading strategies.
Clearstream’s central securities depository (CSD) in Frankfurt offers the following securities lending and borrowing services:
- The Automated Securities Lending and Borrowing Service (ASL), enhances settlement efficiency through automated loans to prevent failures.
- The KAGplus service enables investment companies and custodian banks governed by German law to meet regulatory requirements on investor protection, while at the same time helping them to improve their yield through securities lending.