12 July 2017
Frankfurt
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
NEX Regulatory Reporting made trade repository under EMIR
24 November 2017 | London | Reporter: Jenna Lomax
The trade repository, which will be based in Stockholm, Sweden, will prepare NEX for its trade operations post Brexit
Al Ramz Capital gains short selling licence
24 November 2017 | Abu Dhabi | Reporter: Jenna Lomax
Al Ramz Capital is one of the first investment providers to offer short-selling in the UAE
BNP Paribas bolsters its senior agency lending roster
24 November 2017 | London | Reporter: Drew Nicol
Adnan Hussain moved from RBC to take up a role as global head of agency lending and head of market and financing services in the UK for BNP Paribas
Hedge funds continue 2017 run
23 November 2017 | Madrid | Reporter: Drew Nicol
Global AUM of hedge funds rose 24 percent to $3.2 trillion in the past two years, according to data captured by IOSCO’s latest market survey.
Goldman Sachs appointed by Thrivent for agent lending
23 November 2018 | Minneapolis | Reporter: Jenna Lomax
Thrivent Financial has appointed Goldman Sachs as it new lending agent
ICMA maps repo and cash bond operations
22 November 2017 | Zurich | Reporter: Zsuzsa Szabo
ICMA has launched a free-to-read mapping directory for more than 80 technology solutions for repo and cash bond operations
FCA publishes MiFID II guide
22 November 2017 | London | Reporter: Jenna Lomax
The guide focuses on the regulatory regime in MiFID II for trading venues and data reporting services providers