Cboe Clear Europe, one of the leading pan-European Central Counterparties (CCP), recently attained a significant milestone: regulatory approvals to clear European securities financing transactions (SFTs). This diversified the CCP beyond its existing cash equity, equity derivatives and ETF footprint. swissQuant is proud to have worked with Cboe Clear Europe on this initiative, leveraging our expertise in risk modeling and the advanced capabilities of our CleaRisQ risk engine to support this expansion.
This development introduces a centrally cleared model for SFTs in European cash equities and ETFs—enhancing risk management and operational efficiency while aligning with key regulatory frameworks.
Advancing Securities Financing
For years, securities financing transactions have played a vital role in market liquidity and stability. Traditionally handled bilaterally, these transactions often carried higher risk and operational inefficiencies.
Cboe Clear Europe’s move to offer a centrally cleared solution for SFTs is a significant step forward for market participants, delivering:
- Reduced counterparty risk through central clearing and settlement.
- Post-trade lifecycle management for smoother operational workflows.
- Support for 19 European Central Securities Depositories (CSDs), broadening access across the region.
- Alignment with EMIR, CSDR, and SFTR, ensuring compliance with the latest regulatory requirements.
By addressing both risk and efficiency, this offering sets a new standard for securities financing in Europe.
CleaRisQ: The Risk Engine at the Core
The service utilisies swissQuant’s CleaRisQ risk engine, a robust and scalable solution tailored to the demands of CCPs. CleaRisQ provides real-time risk calculations, dynamic margining, and stress testing capabilities that are essential for managing the complexity of SFTs.
Recognized by Risk.net as the CCP Support Product of the Year, CleaRisQ has assisted Cboe Clear Europe with the expansion of its offerings while maintaining the precision and reliability required for clearing operations.
This partnership highlights the strength of CleaRisQ not only as a product but as an enabler of innovation, supporting CCPs as they adapt to evolving market needs.
What This Means for Market Participants
For securities lenders and borrowers, the benefits of a centrally cleared model extend beyond compliance:
- Reduced risk-weighted asset exposures, improving capital efficiency.
- Streamlined processes, reducing manual intervention and operational bottlenecks.
- Potential cost savings through opportunities like cross-margining.
- Increased transparency, fostering trust and market integrity.
These enhancements ensure that participants not only meet today’s requirements but also gain the tools to operate more effectively in the future.
Perspectives from Cboe Clear Europe
A Perspective from swissQuant
François Doisneau, Head of Capital Markets Technologies at swissQuant, commented:
“Our work with Cboe Clear Europe has always focused on addressing real challenges in the market. With CleaRisQ powering this expansion into securities financing transactions, we’ve delivered a solution that supports the complexity of these products while ensuring efficiency, transparency, and scalability. It’s a privilege to collaborate with a team that shares our commitment to advancing the market, and we’re excited to continue building on this foundation in the years to come.”
Looking Ahead
This achievement is a testament to the power of collaboration and the role of technology in driving meaningful progress. swissQuant is proud to support Cboe Clear Europe in delivering solutions that empower market participants, strengthen financial systems, and advance the capabilities of the securities financing ecosystem.
Learn More About CleaRisQ
