#Netherlands #Amsterdam #fixed income #Cboe Global Markets #Securities Financing

Cboe Clear Europe Expands Securities Financing Transactions into Fixed Income

Cboe Global Markets, known for its innovative approach in the financial sector, has announced an important development for its clearing services. On August 24, Cboe Clear Europe will enhance its Securities Financing Transactions (SFT) capabilities by including Fixed Income instruments. This strategic move reflects Cboe's commitment to expanding its global presence and optimizing the securities lending landscape.

With the new service, Cboe Clear Europe will facilitate the lending of various government and corporate bonds across the EU, Swiss, UK, and U.S. markets. This includes significant offerings like U.S. Treasuries and corporate bonds, providing an expansive range for non-U.S. lenders and borrowers. Settlements will be handled through major institutions including Euroclear Bank for European and Swiss bonds, CREST for UK instruments, and the Depository Trust Company for U.S. corporate bonds.

Vikesh Patel, Global Head of Clearing and President of Cboe Clear Europe, commented, "The inclusion of Fixed Income securities is a natural progression for our SFT service. It presents transformative opportunities for the lending community, allowing them to enhance their portfolios effectively. We have identified a strong demand from the SFT industry for improved capital efficiency and reduced risk-weighted asset exposures—demands that extend across various asset classes. This emphasizes our continuing investment in global clearing services aimed at enhancing capital utilization for market participants."

This addition follows the successful launch of the SFT service in 2025, which initially addressed the needs of European equities and ETFs and involved 19 European Central Securities Depositories. Since its inception, Cboe Clear Europe's SFT offering has shown promising adoption, with daily outstanding loan values peaking at €9 billion, translating into over 1,000 settlements each day.

The shift from bilateral to centrally cleared SFTs allows participants to achieve greater efficiency in their balance sheets and simplifies numerous post-trade processes, including settlement and client onboarding.

Jan Treuren, Head of Product at Cboe Clear Europe, highlighted the growing appetite among participants for a streamlined, globally consistent clearing framework for securities lending. He stated, "With the increasing utilization rates for lenders, we are excited to integrate the capital efficiency and operational simplicity we’ve established in European equities and ETFs across new asset classes. These advancements are pivotal in creating a leading securities lending clearing ecosystem."

Cboe's clearing operations, consisting of both Cboe Clear Europe and Cboe Clear U.S. (CCUS), complement the diverse markets it operates, from options and futures to equities and FX. Cboe Clear Europe specifically offers clearing services for European cash equities and SFTs, while CCUS currently manages digital asset futures and anticipates broadening its clearing capabilities to include various established and emerging asset classes in the near future.

In light of these developments, Cboe Global Markets continues to solidify its role as a key player in the global financial markets. Having initiated its journey with the world's first listed options exchange in 1973, the company has maintained its innovative edge by continuously launching products like the SP 500® index options and the VIX® Index, fundamentally changing how risk is managed in the investment landscape.

For anyone interested in these advancements or seeking more information, Cboe Global Markets encourages visits to its website at www.cboe.com. The future for Cboe Clear Europe looks promising, with its bold move into Fixed Income marking yet another chapter in its rich legacy of market innovation.