Cboe Clear Europe, the pan-European clearing house operated by Cboe Global Markets, plans to expand its Securities Financing Transactions (SFT) clearing service to include fixed income instruments beginning 24 August. The service will cover EU, Swiss, and UK government and corporate bonds for all market participants, as well as US Treasuries and US corporate bonds for non-US entities.
Settlement will be processed via Euroclear Bank for European and Swiss instruments, CREST for UK assets, the Federal Reserve for US Treasuries, and the Depository Trust Company for US corporate bonds. Transitioning SFTs from bilateral agreements to a centrally cleared model aims to improve balance sheet efficiency and streamline post-trade operations, including client onboarding, reporting, and settlement.
This initiative follows the 2025 launch of SFT clearing for European cash equities and ETFs across 19 depositories. Adopted by principal lenders, agent lenders, and borrowers, the existing service averages over 1,000 daily settlements, with daily notional outstanding loan values reaching €9 billion.
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