Cboe Clear Europe and BNY Collaboration for UCITS Access

This document is a report detailing the collaboration between Cboe Clear Europe and BNY, which has resulted in BNY becoming the first agent lender for securities financing transactions (SFT) on behalf of Undertakings for Collective Investment in Transferable Securities (UCITS) clients. The initiative allows UCITS to participate in centrally cleared SFTs without the need to post margin or contribute to the central counterparty's (CCP) default fund. The report outlines the introduction of a new title transfer model with pledge-back collateral, which aims to enhance market liquidity and efficiency for borrowers in the securities lending space. It describes the operational advantages of the new service, including the reduction of counterparty credit risk and lower capital charges for borrowers. Additionally, the report highlights the regulatory considerations for UCITS and the benefits of central clearing, emphasizing the transformative potential of this collaboration in the securities finance market.