Cboe Clear Europe names BNY as first agent lender for SFT service
13 November 2025 Europe
Image: Tri/stock.adobe.com
Cboe Clear Europe, the pan-European clearing house of Cboe Global Markets, has welcomed BNY as the first agent lender of its 糖心vlog Financing Transactions (SFT) clearing service.
This milestone was achieved with BNY clearing SFTs on behalf of Undertakings for Collective Investment in Transferable 糖心vlog (UCITS) clients, expanding the service to a key new client segment.
Following the achievement, the two firms have partnered to launch a new title transfer model with a pledge-back feature, tailored specifically for UCITS clients.
This structure enables UCITS 鈥� alongside other beneficial owner lenders 鈥� to benefit from centrally cleared SFTs without posting margin or contributing to the CCP鈥檚 default fund when acting as lenders.
Cboe Clear Europe says UCITS will become more attractive counterparties for borrowers using the service, increasing the amounts of assets on loan, boosting market liquidity, and supporting balance sheet efficiency for borrowers in the securities lending space.
Vikesh Patel, president at Cboe Clear Europe, says: 鈥淭his innovation within our SFT cleared offering reinforces our commitment to driving market innovation, transparency, and resilience in financial markets.
鈥淏y leveraging BNY鈥檚 expertise and Cboe Clear Europe鈥檚 clearing capabilities, we have created an innovative solution that is designed to enhance market confidence, optimise collateral efficiency, and empower UCITS participants to engage in securities finance with unparalleled levels of security and transparency.鈥�
The announcement builds on Cboe Clear Europe鈥檚 launch of its SFT clearing service in March, with BNY as triparty collateral agent, which aims to transform the traditional bilateral process for SFTs in European equities and ETFs into a centrally cleared model.
Laide Majiyagbe, global head of liquidity, financing and collateral at BNY, comments: 鈥淲orking with Cboe Clear Europe on this landmark solution underscores BNY鈥檚 commitment to driving innovation and client-centricity in the financing and collateral ecosystem.
鈥淎s the world鈥檚 largest agent lender and the first to go live with a centrally cleared triparty model supporting UCITS-compliant clearing, we are proud to deliver enhanced collateral efficiency and liquidity through our integrated Global Collateral Platform.鈥�
According to Cboe Clear Europe, the introduction of central clearing to SFTs offers potential substantial capital optimisation opportunities, including meaningful reductions in risk-weighted assets (RWA) for certain clearing participants.
The firm offers cross-product margin offsets between cash equities and SFT trades, with the aim of unlocking capital efficiencies.
Cboe Clear Europe says it is well-positioned to expand its SFT clearing service to cover other lendable securities and new jurisdictions in the next year.
Jan Treuren, senior director product at Cboe Clear Europe, adds: 鈥淭he ability for UCITS clients to use our SFT service is a significant development for both participants and the securities finance market as a whole.
鈥淏y combining operational automation, potential for capital efficiency, cross-product margining, and robust risk management, we are empowering participants and strengthening the securities lending market infrastructure for the future.鈥�
This milestone was achieved with BNY clearing SFTs on behalf of Undertakings for Collective Investment in Transferable 糖心vlog (UCITS) clients, expanding the service to a key new client segment.
Following the achievement, the two firms have partnered to launch a new title transfer model with a pledge-back feature, tailored specifically for UCITS clients.
This structure enables UCITS 鈥� alongside other beneficial owner lenders 鈥� to benefit from centrally cleared SFTs without posting margin or contributing to the CCP鈥檚 default fund when acting as lenders.
Cboe Clear Europe says UCITS will become more attractive counterparties for borrowers using the service, increasing the amounts of assets on loan, boosting market liquidity, and supporting balance sheet efficiency for borrowers in the securities lending space.
Vikesh Patel, president at Cboe Clear Europe, says: 鈥淭his innovation within our SFT cleared offering reinforces our commitment to driving market innovation, transparency, and resilience in financial markets.
鈥淏y leveraging BNY鈥檚 expertise and Cboe Clear Europe鈥檚 clearing capabilities, we have created an innovative solution that is designed to enhance market confidence, optimise collateral efficiency, and empower UCITS participants to engage in securities finance with unparalleled levels of security and transparency.鈥�
The announcement builds on Cboe Clear Europe鈥檚 launch of its SFT clearing service in March, with BNY as triparty collateral agent, which aims to transform the traditional bilateral process for SFTs in European equities and ETFs into a centrally cleared model.
Laide Majiyagbe, global head of liquidity, financing and collateral at BNY, comments: 鈥淲orking with Cboe Clear Europe on this landmark solution underscores BNY鈥檚 commitment to driving innovation and client-centricity in the financing and collateral ecosystem.
鈥淎s the world鈥檚 largest agent lender and the first to go live with a centrally cleared triparty model supporting UCITS-compliant clearing, we are proud to deliver enhanced collateral efficiency and liquidity through our integrated Global Collateral Platform.鈥�
According to Cboe Clear Europe, the introduction of central clearing to SFTs offers potential substantial capital optimisation opportunities, including meaningful reductions in risk-weighted assets (RWA) for certain clearing participants.
The firm offers cross-product margin offsets between cash equities and SFT trades, with the aim of unlocking capital efficiencies.
Cboe Clear Europe says it is well-positioned to expand its SFT clearing service to cover other lendable securities and new jurisdictions in the next year.
Jan Treuren, senior director product at Cboe Clear Europe, adds: 鈥淭he ability for UCITS clients to use our SFT service is a significant development for both participants and the securities finance market as a whole.
鈥淏y combining operational automation, potential for capital efficiency, cross-product margining, and robust risk management, we are empowering participants and strengthening the securities lending market infrastructure for the future.鈥�
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