Cboe Clear Europe Expands Securities Lending into Fixed Income

The expansion covers a diverse array of assets, including EU, Swiss, and UK government and corporate bonds for all market participants, as well as US Treasuries and corporate bonds for non-US lenders and borrowers. Settlement processes will be managed through a network of infrastructure providers, including Euroclear Bank, CREST, the Federal Reserve, and the Depository Trust Company. This integration follows the 2025 rollout of the firm’s SFT clearing service, which initially focused on European equities and ETFs and currently sustains daily notional outstanding loan values of €9 billion.

Vikesh Patel, President of Cboe Clear Europe, noted that the industry is increasingly seeking ways to lower risk-weighted asset exposures and optimize portfolios. By transitioning these transactions from bilateral agreements to a centrally cleared model, firms can simplify post-trade operations and improve balance sheet efficiency. Jan Treuren, Head of Product, emphasized that the move addresses the growing demand for a globally consistent clearing framework, effectively applying the risk management benefits previously established in equity markets to the fixed income sector.