Updated
Updated · Markets Media · Aug 6
Cboe Clear Europe Adds Fixed-Income SFT Clearing on Aug. 24 as Daily Loans Reach €9 Billion
Updated
Updated · Markets Media · Aug 6

Cboe Clear Europe Adds Fixed-Income SFT Clearing on Aug. 24 as Daily Loans Reach €9 Billion

3 articles · Updated · Markets Media · Aug 6

Summary

  • August 24 is the target launch date for Cboe Clear Europe’s expansion of securities financing transaction clearing into fixed income, adding government and corporate bond lending.
  • The new service will cover certain EU, Swiss and UK bonds for all participants, plus U.S. Treasuries and U.S. corporate bonds for non-U.S. lenders and borrowers.
  • Cboe said demand for greater capital efficiency and lower risk-weighted asset exposure is driving the move from bilateral to centrally cleared securities lending.
  • The expansion builds on the 2025 SFT launch for European equities and ETFs, which now handles about €9 billion in daily notional outstanding loans and more than 1,000 settlements a day.
  • Settlement will run through Euroclear Bank, CREST, the Federal Reserve and DTC, extending Cboe’s push to build a broader global securities-lending clearing network.

Insights

With 9 billion euros already at stake daily, will Cboe's aggressive expansion into fixed income finally kill traditional bilateral securities lending?
Could Cboe’s bold move to consolidate cross-border bond clearing inadvertently create a massive new systemic risk for global markets?