Clearstream’s Automated Securities Lending and Borrowing services are designed to optimize settlement efficiency and unlock liquidity across markets. Integrated directly into our ICSD and CSD platforms, including support for settlement via TARGET2-Securities (T2S), these solutions help clients finance failed trades and streamline operations. Whether used independently or in tandem, our lending services offer seamless execution and robust support, Clearstream handles everything from loan organization to daily administration.

ASL

Smart Settlement Backup

At the core of Clearstream’s settlement engine, ASL acts as the lender of last resort, automatically financing trades to prevent failures and keep settlements on track.

With one contract, borrowers tap into a large pool of undisclosed lenders, while lenders enjoy reduced counterparty risk, waived custody fees, and full operational support.

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

• ASL product description
• ASL legal documentation

ASL principal

Unified Lending Power

ASL principal combines ASL’s efficiency with the security of Clearstream Banking S.A. as sole counterparty.

It covers both T2S and ICSD settlement, enabling clients to borrow from or lend to a single pool of securities regardless of custody location. Integrated collateral management automatically optimizes liquidity allocation across locations and triparty activities.

• ASL product description
• ASL legal documentation

Clearstream’s strategic lending program enables clients to maximize the use of their assets to generate additional yield. Acting as a contractual counterparty to both lenders and borrowers, Clearstream offers the advantage of trading against a AA-rated financial market infrastructure. This structure allows Securities Lending and Borrowing (SLB) counterparties to benefit from more favorable Risk Weighted Assets (RWA) treatment than typically available through bilateral trading.

ASLplus

Yield-Driven Lending

ASLplus is a dynamic service that increases lenders’ portfolio yields, with Clearstream acting as contractual counterparty under the SLPA. It complements the ASL fails lending service by offering ASL lenders the opportunity to earn additional income through negotiated lending rates, beyond the standard ASL fixed rates. Lenders also benefit from waived custody fees on lent positions.

This service provides access to the wholesale fixed income market, driven by strategic lending demand rather than settlement failure coverage.

• ASLplus product description

Securities lending remains a vital tool for central banks in 2025, as they continue to rely on Clearstream’s fails lending (ASL, ASL principal) and strategic securities lending (ASLplus) services to support liquidity and collateral management in a market that has moved beyond the era of quantitative easing. 

While securities lending was once closely tied to monetary policy interventions such as large-scale asset purchase programs, its role has evolved. Today, central banks use these services to address settlement fails, optimize the deployment of their foreign reserves, and maintain the smooth functioning of financial markets, especially as interest rates and liquidity conditions fluctuate.

Since the end of programs like the ECB’s Public Sector Purchasing Programs, central banks have adapted their lending strategies to meet new regulatory requirements and respond to increased demand for high-quality liquid assets. Clearstream’s securities lending solutions have been enhanced with greater automation, real-time reporting, and broader collateral eligibility, enabling central banks to lend securities more efficiently and transparently. As a result, central banks remain among the largest participants in these programs, supporting liquidity and stability in both European and global markets.

The market environment in 2025 is characterized by a focus on regulatory change, digital transformation, and the need for robust risk management. Central banks are increasingly attentive to developments such as the transition to T+1 settlement and the integration of ESG criteria into collateral frameworks. Clearstream’s securities lending solutions have evolved to address these challenges, with regular product enhancements and close engagement with industry working groups to ensure best practices and compliance.

Securities lending is expected to remain a core liquidity management tool for central banks. The flexibility and resilience of platforms like ASL, ASL principal and ASLplus will be essential as central banks navigate a complex and rapidly changing financial landscape, marked by digital innovation, regulatory shifts, and ongoing market volatility.