PGGM is in the process of finalizing their admission as a direct participant of Eurex Clearing’s Securities Lending central counterparty (CCP), becoming the first buy-side client to start transactions with Morgan Stanley using the Lending CCP’s 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’ (ECS) full connectivity offering to access Eurex Clearing’s Lending CCP. The service will enable them to transmit trades agreed via EquiLend to the Lending CCP.
Roelof van der Struik, Investment Manager Treasury Trading & Commodities at PGGM, said: “At 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. The 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.”
Eurex Clearing’s Lending CCP covers loans in global fixed income securities as well as equities and exchange-traded funds in Europe, and has some of the largest providers of financial services to institutional investors and securities lending agents as strategic partners. As part of Deutsche Börse, Eurex Clearing is the only infrastructure provider with an integrated clearing offering across derivatives, equities, securities lending and repo transactions.