Greece takes next step
Greece has made some positive steps recently in pushing its market towards a proper securities lending model. The market earlier this year started allowing over the counter (OTC) securities lending. And quite soon after, JPMorgan as an agent lender completed its first OTC transactions in Greek equities.
The first transactions were booked on 30 April 2008 by JPMorgan's London trading desk only seven business days after the Hellenic Capital Market Commission approved using the recently introduced OTC facility for securities borrowing and lending purposes.
The remaining issue in Greece concerns settlement costs. The CSD fees for the OTC transactions will be 4 bps of the value of the transaction, for each side (buyer/seller). In the case of a versus payment transaction an additional transfer fee of €1 will be charged to both sides.
It is understood that HELEX has agreed that stock borrow and loan...
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