Pirum expands its CCP Gateway service to Agent Lenders for Fixed Income & Equity clearing.
The trade, which was executed by BNY Mellon on behalf of a pension fund client, originally faced Morgan Stanley as counterparty, the transaction, however, was ultimately cleared at Eurex, CCP, via Pirum’s CCP Gateway service.
This transaction represents a major step forward for the market as it is the first agent lender trade to be executed in this manner via Eurex CCP.
Pirum’s CCP Gateway enables bilaterally traded fixed income and equity business to be sent to a CCP for novation, by leveraging post-trade automation connectivity to access central clearing platforms.
The solution offers seamless integration to the CCP using the same bilateral trading processes that exist today so allowing relationships to remain intact and preserving the existing business models.
The solution provides simple access to the proven benefits of a central clearing model including improved capital and operational efficiencies, wider distribution channels, and single counterparty exposure – Pirum’s COO Phil Morgan said “We are delighted to have assisted this breakthrough in CCP activity and look forward to assisting the market with future activity.”
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