Cboe Clear Europe, the Amsterdam-based pan-European clearing house, has announced that Bank of America and State Street are among the latest to support its forthcoming Central Counterparty (CCP) clearing service for securities financing transactions (SFTs), with the service expected to launch in Q3 2024, pending regulatory approval. This new commitment expands the initial group to nine participants, including prominent banks, clearing firms, asset managers, and custodians, aiming to enhance the efficiency and risk management of SFTs in European cash equities and ETFs.
The service, which addresses the regulatory and operational challenges posed by Basel III and IV frameworks, aims to mitigate capital demands and credit risks by providing a streamlined clearing and settlement process. It is designed to reduce risk-weighted assets for clients, improve settlement efficiency, and support the growth and operational practices within the European SFT market.
Subscribe to our newsletter
