First direct beneficial owner trade settled 12 July 2018London Reporter: Jenna Lomax
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The first beneficial owner trade as a direct clearing member has been settled, marking a major milestone in securities lending.
Six partners were required to complete the trade: BNY Mellon, EquiLend, Euroclear, Eurex Clearing, Morgan Stanley and PGGM.
BNY Mellon was the custodian and EquiLend acted as the flow provider and trading platform.
Euroclear was the triparty collateral agent, Eurex Clearing the central counterparty (CCP), Morgan Stanley the borrower, and PGGM the lender.
Commenting on the news, Roelof van der Struik of PGGM, said: “We are very proud that the six partners worked so well together to make this market innovation a success. This success, for me, is the evidence that if we work together we can transform the securities finance market making it ‘fit for the future’.”
Allison Levy, director of asset servicing global product management at BNY Mellon, commented: "BNY Mellon are very pleased to confirm that the first cleared lending trade has settled on our custody books today for our client PGGM. In the coming weeks we will continue to work with our partners Eurex, Morgan Stanley, Equilend and Euroclear Bank through an agreed soft launch plan."
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