Copying and distributing are prohibited without permission of the publisher
Centre of gravity - agent lenders not convinced about CCPs
18 July 2011
Agent lenders remain unconvinced about central counterparties for securities lending. If they are not enticed by innovation, regulators may eventually compel them
Read more:
Central counterparties
CCP
Should the securities lending industry fall into line with other areas of the financial services sector and adopt a central counterparty (CCP) model? It is a debate that has been quietly rumbling along in the industry for the last few years. As with all new developments, a small number of innovators are attempting to steer the industry in this new direction. Gently opposed to them is the weight of established working practices and a certain degree of scepticism. So are the benefits clear enough to all parties? Is a CCP model really the future of securities lending?
CCPs have been become established as the clearing process for the buying and selling of a wide variety of securities from vanilla cash equities and government bonds to interest rates swaps and other over-the-counter (OTC) derivatives. A CCP is an entity that sits in the middle of the trade managing margin and collateral...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
