Collateral Management for Securities Lending

Clearstream’s triparty securities lending services are part of our comprehensive offering for collateral management. Acting as neutral agent, Clearstream offers modular triparty loan and collateral management services supporting our customers to manage risks and liquidity more efficiently.

Securities lending can place great challenges on systems and operations for both lenders and borrowers. Our triparty services manage the post-trade complexities for cleared and uncleared securities lending through a sophisticated collateral engine with advanced functionalities and the use of extensive data fields. As such, customers save time and resources as operational tasks are delegated to our team of experts while having transparency on their activities and access to automated reporting and connectivity tools

Collateralising uncleared securities lending

Clearstream offers proven triparty collateral management features complemented by optional loan book valuation and settlement.

As market leader in the banking, funding and financing space, Clearstream manages collateral to cover all types of exposures in real-time, across currencies, asset classes and time zones while offering cash re-investment and collateral transformation services. This helps our customers to overcome fragmentation and manage their collateral from a single pool across cleared and uncleared repo, securities lending, derivatives and central bank activities amongst others.

Collateralising cleared securities lending

Clearstream customers can access Eurex Clearing’s unique central counterparty (CCP) services for the securities lending market where counterparty risk and credit exposures are minimised for individual participants. The Lending CCP offers integrated services for securities financing in combination with their derivatives bond and equity products.

Being part of Deutsche Börse Group is a major strength enabling Clearstream to fully leverage its triparty collateral services with our sister company Eurex Clearing and their Lending CCP.

Optimised asset allocation

Clearstream ensures the optimal (re-)use of collateral (cash, bonds, equities and funds) across products, counterparties and locations.

In addition, Clearstream also arranges loans for our customers through Automated Securities Lending (ASL) to prevent settlement failures and actively managed strategic securities lending. ASLplus complements this service with Clearstream as principal and single borrower keeping customer risk minimal and increasing the lender’s portfolio yield.