SECFINEX AND LCH.CLEARNET TO LAUNCH FIRST CENTRAL COUNTERPARTY FOR STOCK BORROWING & LENDING
September 16, 2008
SecFinex Limited, the leading European electronic trading platform for equity finance, and LCH.Clearnet, the leading European independent central counterparty (CCP), today announced that they will be working together to launch central counterparty services for stock borrowing and lending across the SecFinex Order Market multilateral trading facility for Euronext markets. This will include stock loan transactions in France, Belgium, The Netherlands and Portugal.
This is the first time that stock borrowing and lending markets will be able to take advantage of the services offered by a central counterparty. Market participants will benefit from reduced risk, complete trading anonymity and operational efficiencies.
The CCP directed trades on the SecFinex marketplace will eliminate bi-lateral credit risk between lender and borrower, will lower the administration costs associated with maintaining multiple credit agreements and will significantly reduce the capital required to support stock loan transactions. The introduction of LCH.Clearnet’s CCP services is likely to significantly increase market volumes and will enable market participants, through the general clearing arrangements, to access more markets and new counterparties. SecFinex and LCH.Clearnet will launch the revised offering in June 2009. Both user groups and leading investment organisations have been widely consulted in planning the service to ensure it meets users’ needs.
Christophe Hémon, CEO of LCH.Clearnet SA, said, “Recent market events have highlighted the vital role a CCP can play. We are delighted to be working with SecFinex on this innovative project. It underlines our desire and capacity to respond to complex and new market expectations, whilst our users will benefit from increased trading opportunities.
”Peter Fenichel, CEO of SecFinex, said, “We are delighted to partner with LCH.Clearnet in this very important evolutionary move to enhance SBL market efficiency, transparency and transaction activity. We believe the introduction of a CCP in Euronext markets will establish the basis for extending this model across all European markets. The investment and support from NYSE Euronext will position SecFinex as the leader in these key markets and encourage further market developments which will reduce capital requirements and lower risk for borrowers and lenders.”
JP Morgan joins SecFinex July 16, 2008 SecFinex Ltd., the leading European electronic marketplace for securities lending, today announced that JP Morgan has joined SecFinex as the platform’s newest participant.
SecFinex is an independent, efficient and impartial electronic trading platform that allows securities financing professionals worldwide to meet and arrange securities financing trades. There are more than 40 participants registered with SecFinex. These users, who gain access to SecFinex via a secure internet connection, include a wide cross-section of European lenders, borrowers and intermediaries. Consistent with its role as a market innovator, SecFinex is currently expanding asset class coverage to the borrowing and lending of ETFs.
JP Morgan is a leading global financial services firm. JP Morgan’s Equity Finance unit works closely with JP Morgan’s custody, tri-party services and broker dealer and strives to offer creative solutions that meet clients’ borrowing, lending and collateral needs. The JP Morgan Stock Borrow Loan (SBL) team has experienced traders in London and other international locations.
“We are pleased to be joining SecFinex at this stage in its development as we consider SecFinex to be one of the market-leading technologies helping to transform the SBL market” said Lee Olley, Managing Director Equity Finance of JP Morgan.
“JP Morgan is a prestigious client that will offer significant relationship opportunity to our existing and expanding client base; by joining us at this time, JP Morgan has the opportunity to influence the way our platform develops through new technology and new business models” said Peter Fenichel, CEO of SecFinex.
SecFinex launches initiative to stimulate stock loan interes in Exchange Traded Funds
Paris, August 26, 2008
SecFinex is broadening the equity security composition on its electronic trading platform by the inclusion of Exchange Traded Funds (“ETFs”) for the first time. The development of the ETF product on the SecFinex platform will be in association with iShares, the world’s number one provider of ETFs, managed by Barclays Global Investors (“BGI”) and is committed to supporting electronic lending platforms.
Demand for ETFs globally has surged in recent years, underlying their usefulness in the investment community – during both bull and bear markets. Global ETF assets now amount to approximately US$800 billion, with no fewer than 1,171 ETFs listed across global stock markets. ETFs offer professional investors the reassurance of high levels of liquidity, enabling the rapid implementation of a comprehensive range of investment strategies.
Marc Knowles, head of product management for iShares, said: “We are delighted that SecFinex has chosen to list iShares on their platform. The new initiative allows the interests of us and SecFinex to be aligned as we believe the development of a flexible and efficient electronic marketplace for stock loans in iShares, will further stimulate the growth of the ETF market.”
Peter Fenichel, CEO of SecFinex, said: “We welcome BGI’s support in the further development of the ETF stock loan activity on SecFinex. Market participants tell us the creation of a central electronic marketplace for ETF securities borrowing and lending is a highly desirable objective and the assistance that BGI provides to SecFinex is a significant event that will contribute to the success of this initiative”.