Ed Sharpe, Head of PTS Product

 

Pirum’s annual Product Buzz series highlights our product owners’ views on the tech trends that will define securities finance this year. In this instalment, we hear from Ed Sharpe, Head of PTS Product.

As a result of Basel III, CSDR and SFTR, securities finance participants are under increasing pressure to find cost-effective alternatives to the conventional bilateral trading model.

However, a newly approved European CCP may provide respite.

After several unsuccessful attempts from other industry participants, late last year Cboe Clear Europe secured regulatory approval for securities financing transactions (SFTs) clearing from the De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM).

Pirum is proud to have played a part in this key industry development, with our new product ClearingConnect serving as Cboe Clear Europe’s transmitter of new trade instructions and post-trade lifecycle events. Integrating Cboe into our SaaS solutions enables clients to leverage their existing data feeds to seamlessly clear SFTs and manage lifecycle events.

The globalization of clearing

The benefits of leveraging a CCP are more compelling now than ever: centralized and standardized collateral pricing, billing, matching, collateral, settlement, and SFTR reporting, coupled with a 2% RWA weighting.

Cboe’s achievement also aligns EMEA to NAM, where CCPs are already active in both the repo and securities lending space. Coupled with the increasingly widespread use of CCPs for derivatives, this reflects a key trend for 2025: the globalization of clearing.

Pirum remains at the heart of securities finance automation, by supporting and connecting our clients with their counterparts, trading platforms, collateral and settlement venues, trade repositories, and now, of course, CCPs.

To learn more about the globalization of clearing and Pirum's Clearing Connect, get in touch with Ed.