Eurex Clearing and Pirum partner ahead of sec lending CCP launch
Eurex Clearing and Pirum Systems, the automated
post-trading platform for the securities finance industry, have partnered to
facilitate market access to Eurex Clearing’s upcoming lending CCP.
The connectivity agreement will enable market
participants to leverage Pirum’s automation platform to transmit bilaterally
negotiated transactions to Eurex Clearing for CCP novation and downstream
The CCP will be launched in mid-2012, once the
platform has determined the readiness for potential users. Eurex Clearing
spokesperson Heiner Seidel said that Pirum is one of potentially multiple
systems that the CCP can connect with in order to be added to existing market
“We are very pleased to work with Pirum in our
effort to bring the safety and efficiency of Eurex Clearing’s CCP services to
the securities lending market. Leveraging Pirum’s existing connectivity will
significantly simplify access to our new service and will directly benefit our
customers,” said Thomas Book, member of the Eurex Executive Board, responsible
“This partnership will enable our extensive
customer base to make use of their connectivity with Pirum to use Eurex
Clearing’s new and innovative securities lending CCP Service. Pirum’s solution
will offer seamless integration for CCP transactions using the same business
processes and system interfaces that are already used for bilateral transactions,”
said Rupert Perry, CEO of Pirum Systems.
On launching mid-year, the CCP will be the first
to offer central clearing to the bilateral securities lending market, which,
Eurex Clearing says, will offer safety and efficiency to those participants.
The CCP will cover European markets for loans in equities, exchange-traded funds as well as
fixed income securities. The CCP is intended to reduce counterparty risk
exposure and eliminate the need for multiple credit evaluations.
In addition, the CCP will also introduce a member
model for beneficial owners in order to support the existing relationship
between these participants and agent lenders and beneficial owners.
Eurex Clearing also intends to further expand
the range of its lending CCP service by leveraging internal solutions. The ultimate goal is to autoconnect as many platforms and
trading systems as possible, said Seidel.
Reporting by Janet du Chenne, Global Custodian, an Asset International publication.