Clearstream supports sec lending for Bank of Italy
The Bank of Italy will make securities purchased under the Public Sector Purchase Programme (PSPP) available for lending starting on May 11 2015.
Clearstream, the international central securities depository, has been chosen by the central bank to provide the securities lending service.
The service will include fail coverage activities in support of settlement or automated securities lending and borrowing service (ASL) and strategic market activities or automated securities lending plus (ASLplus).
Lending of PSPP-securities holdings is to take place on a cash neutral basis. This means that repo transactions against cash collateral will be accompanied by a fully offsetting reverse repo transaction for the same value date and, in principle, with the same counterparty.
The list of securities available for lending, on Thomson Reuters and on Bloomberg, will be updated every Monday "as a rule".
A fixed spread fee of 10 basis points will be applied to ASLplus transactions.
Clearstream Banking’s standard terms and conditions will govern the programme. Market participants have been advised to contact Clearstream Banking for specific questions on ASL and ASLplus.
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