12 July 2017
Reporter: Drew Nicol
CCP use on the up, says ECB
Central counterparties (CCPs) are becoming more attractive for securities financing transactions (SFTs), according to a European Central Bank (ECB) survey.

Banks reported that the use of CCPs had increased between March and May for many types of collateral and both average and most-favoured clients.

However, the use of CCPs remained basically unchanged only when convertible securities, equities and asset-backed securities were used as collateral.

The survey focused on credit terms and conditions in euro-denominated SFTs and over-the-counter derivatives markets.

Survey results revealed an increased use of CCPs and growing demand for both funding collateralised by equities and for longer term funding collateralised by domestic government bonds.

A further deterioration in the liquidity and functioning of the market for domestic government bonds was also reported.

According to the ECB, there was only small changes in liquidity and functioning for other asset classes covered by the survey during the March to May reference period, compared with the more significant deteriorations reported over the past two years.

The results of the ECB’s quarterly survey are based on responses from a panel of 28 large banks, comprising 14 euro area banks and 14 banks with head offices outside the euro area.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Stock loan falls short for buy side as liquidity source
25 July 2017 | London | Reporter: Jenna Lomax
Securities lending was voted the least popular source of liquidity in a survey of European buy-side heads of operations
Hedge fund H1 gains best since 2009
25 July 2017 | London | Reporter: Drew Nicol
The hedge fund industry has recorded one of its strongest H1 performance periods since the financial crisis, according to data and intelligence provider Preqin
Calypso gains stake in Sernova Financial
25 July 2017 | London | Reporter: Drew Nicol
Sernova Financial, which already leverages the Calypso Cloud platform, recreates the shared infrastructure and service items of clearing brokers
RMA keynote The Mooch heads to the West Wing
24 July 2017 | Naples | Reporter: Drew Nicol
Anthony Scaramucci, who appeared as keynote speaker at last year’s RMA securities lending conference in Florida, has been appointed as the White House communications director
Northern Trust’s Q2 lending revenue stutters
24 July 2017 | New York | Reporter: Drew Nicol
Northern Trust saw its securities lending earnings fall to $24.6 million in Q2
New recruits for BNY Mellon's alternative investment team
21 July 2017 | New York | Reporter: Drew Nicol
BNY Mellon has made two senior appointments to its alternative investment services team
Euroclear achieves record-breaking H1 collateral volume
21 July 2017 | Frankfurt | Reporter: Jenna Lomax
Post-trade service provider Euroclear saw achieved "record levels" of collateral outstanding through its Collateral Highway in the first half of 2017