Cboe Clear Europe Clears First Securities Financing Transactions

• Cboe Clear Europe launches clearing service for European SFTs in cash equities and ETFs
• Natixis CIB and JP Morgan among first participants to use new service
• Introduced to meet strong client demand for central clearing of SFTs, enhancing capital, operational and post-trade processing efficiencies amid evolving regulatory requirements

AMSTERDAM and LONDON, March 31, 2025 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announces that Cboe Clear Europe has commenced clearing of European Securities Financing Transactions (SFTs). Natixis Corporate & Investment Banking acted as a Principal Lender against JP Morgan as a Borrower, as part of the first trades cleared through the new service.

Cboe Clear Europe has leveraged its position as the largest pan-European clearing house for cash equities to bring this first-of-its-kind service to market, which represents a key step in the company's strategy to become a leading multi-asset class clearing house in the region. This service transforms the bilateral process for SFTs in European equities and ETFs into a centrally cleared model, helping to increase the capital efficiencies associated with activities such as securities lending and supporting the growth of this key market. In addition to the firms that have already used the service, a number of others - including banks, asset managers, broker-dealers, and Agent Lenders - have completed final testing in preparation for clearing.

The service utilises BNY and JP Morgan as Tri-Party Collateral Agents, while Pirum serves as the transmitter of new trade instructions and post-trade lifecycle events on behalf of clients.

Vikesh Patel, President of Cboe Clear Europe, said: "We're delighted to extend our clearing capabilities with this transformative service for European SFTs. This launch responds to strong client demand for a clearing solution to help improve the capital efficiencies associated with stock borrowing and lending activities – delivering significant benefits to all participants in this ecosystem, including asset owners which lend out inventory as a way of generating additional income for their members. It demonstrates our commitment to both investing in and delivering innovative clearing solutions in collaboration with our clients to meet the growing focus of financial institutions on becoming more capital efficient. We look forward to building out this new ecosystem and exploring opportunities to expand the service into other asset classes and regions."

Gesa Johannsen, Executive Platform Owner, Global Collateral, at BNY, said: "Cboe Clear Europe's offering for European SFTs is an important step as the global collateral industry seeks to leverage central clearing solutions that deliver capital efficiency and enhance the safety and resiliency of funding markets. We're excited to provide clients with the option to clear securities lending transactions through Cboe's new service while leveraging BNY's global collateral platform to manage their liquidity and to access cleared and uncleared collateral markets globally."

Grégoire Froehlich, GSF Trader at Natixis Corporate & Investment Banking, said: "Clearing SFTs at Cboe Clear Europe enhances our capital efficiencies and reduces operational complexities associated with these products. We're delighted to be among the first participants to clear this product at Cboe Clear Europe."

Robert Frost, Chief Product Officer at Pirum, said: "We are delighted to be supporting this important initiative and to extend our services to cleared securities financing transactions. This collaboration is a fantastic example of innovative firms working together to help increase the efficiency of the securities finance industry, and we look forward to continuing to roll out the service in 2025 with the team at Cboe Clear."

Jan Treuren, SFT Product Lead, Cboe Clear Europe, said: "Clearing the first trades is an important milestone for our SFT services, and demonstrates our ability to efficiently leverage our infrastructure and technology capabilities to address customer needs. We expect activity to increase in the weeks and months ahead, with active onboarding and testing already underway with principal lenders, agent lenders acting on behalf of special participant lenders (including UCITS and non-UCITS beneficial owners), and the borrower community."

Cboe Clear Europe is offering central clearing, settlement and post-trade lifecycle management of European SFTs in cash equities and ETFs. This service is available to principal lenders, special participant lenders (UCITS and non-UCITS) and borrowers, with settlements conducted across 19 European Central Securities Depositories (CSDs).

The introduction of central clearing is designed to make the trading of SFTs more capital efficient, particularly with regards to risk-weighted assets. This efficiency is expected to be particularly important given the increased regulatory, capital and operational burdens associated with SFTs resulting from the Central Securities Depositories Regulation (CSDR), Securities Financing Transactions Regulation (SFTR), and planned Basel IV implementation.

The service also provides margin and operational advantages within the largest cash equities clearing house in Europe, including savings from cross-margining between cash equities and SFTs, greater settlement efficiencies, elimination of agent lender disclosures, and improved practices around fees management and corporate actions.

Learn more about Cboe Clear Europe's services here.

About Cboe Global Markets

Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

Neither Cboe Global Markets, Inc. and its affiliates nor BNY, Natixis, JP Morgan, and Pirum recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with BNY, Natixis, JP Morgan, and Pirum. Investors should undertake their own due diligence regarding their securities, futures, digital assets, and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein. 

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SOURCE Cboe Global Markets, Inc.