PGGM goes live with Eurex Clearing鈥檚 securities lending CCP
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PGGM goes live with Eurex Clearing鈥檚 securities lending CCP 18 June 2018Frankfurt Reporter: Jenna Lomax
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PGGM has gone live with Eurex Clearing鈥檚 securities lending central counterparty (CCP).
PGGM is in the process of finalising their admission as a direct participant of Eurex Clearing鈥檚 securities lending CCP and is the first buy-side client to start transactions with Morgan Stanley using the lending CCP鈥檚 specific lender license.
PGGM and Morgan Stanley are currently in the final stages of simulation testing with a view to becoming the first to use EquiLend Clearing Services鈥� (ECS) full connectivity offering to access Eurex Clearing鈥檚 lending CCP. The service will enable them to transmit trades agreed via EquiLend to the lending CCP.
Eurex Clearing鈥檚 lending CCP covers loans in global fixed-income securities as well as equities and exchange-traded funds in Europe.
Roelof van der Struik, investment manager of treasury trading and commodities at PGGM, said: 鈥淎t PGGM, we are pleased to see our strategic initiative come to fruition with the help of Morgan Stanley and EquiLend for our trading connectivity to Eurex Clearing.鈥�
He added: 鈥淭he accompanying effort by BNY Mellon as global custodian and by Euroclear as tri-party collateral agent, have additionally contributed to this innovative approach that helps deliver cost and operational efficiencies for our securities lending activities.鈥�
Susan O鈥橣lynn, managing director for Europe, the Middle East and Africa and head of bank resource management and global head of clearing and collateral optimisation at Morgan Stanley commented: 鈥淭his initiative with PGGM demonstrates Morgan Stanley鈥檚 support of central clearing solutions for securities finance transactions, such as Eurex Clearing鈥檚 CCP model, as these enable us to both build our existing and expand new client relationships and deliver best in class service with risk, resource and operational efficiencies.鈥�
Brian Lamb, CEO of EquiLend, said: 鈥淥ur service is the only solution facilitating the seamless transmission of a transaction at the point of trade straight through to Eurex Clearing鈥檚 lending CCP.鈥�
He added: 鈥淭he dynamic ECS 颅connection to Eurex Clearing allows Morgan Stanley and PGGM to leverage a completely integrated CCP model for securities lending and benefit from the resulting capital and operational efficiencies.鈥�
Marcel Naas, global head of funding and financing at Deutsche B枚rse Group, commented: 鈥淲e are very pleased that PGGM and Morgan Stanley are in the final stages of completing the admission and simulation testing in order to start transacting by utilising EquiLend to access our lending CCP offering.鈥�
He added: 鈥淭he acceptance and growth of the lending CCP is proven by the committed partnership shown by our clients and leading market infrastructure providers.鈥�
Eric Mueller, CEO Eurex Clearing, said: 鈥淚t is a significant achievement to announce PGGM鈥檚 deployment of Eurex Clearing鈥檚 lending CCP.鈥�
He added: 鈥淭he focus on CCP solutions continues to increase, driven by the need for cost and operational efficiencies and we anticipate greater utilisation of our services as the securities finance industry looks to realise the added benefits of a CCP model.鈥�
Allison Levy, director of Asset Servicing Global Product Management, commented: 鈥淏NYMellon are pleased to be the first custodian able to service centrally cleared lending, working in partnership with Eurex and Morgan Stanley to support our client PGGM. We are keen to work with our clients to understand their changing needs and working with the market to develop alternative solutions.鈥�
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