Clearstream Management – Securities Lending Product information Efficient and collateral management for securities lending

Key benefits Securities lending can place great challenges on systems and operations for both lenders and borrowers. ’s Fully integrated solution triparty services manage the post-trade complexities – Triparty loan and collateral services for uncleared trades for cleared and uncleared securities lending. Acting as neutral – Triparty collateral service agent, Clearstream offers modular triparty loan and collateral fully integrated with the unique management services supporting our customers to manage Eurex Clearing Lending CCP risks and liquidity more efficiently. – Safekeeping, monitoring and – Collateral pledge or transfer of title

Efficiency gains Customers save time and resources as operational tasks are delegated to a team of experts

Optimised asset allocation Optimal (re-)use of collateral (, bonds, equities and funds) across products, counterparties and locations

Risk mitigation Clearstream acts as a neutral and independent agent ensuring robust, secure and automated processes

Secure and transparent – Automated real-time reports and Clearstream’s triparty securities cleared and uncleared repo, securities tools available to customers lending services are part lending, derivatives and central bank facilitate oversight and controls of a comprehensive offering activities amongst others. In addition, – Unique (sub-)fund reporting for collateral management. Clearstream also arranges e.g. for Asset Managers for our customers through Automated As market leader in the banking, Securities Lending (ASL) to prevent Leveraged by custodians funding and financing space, settlement failures and actively- – Borrowers, agent and principal Clearstream manages collateral managed strategic securities lending. lenders use our services to cover all types of exposures – Clearstream also helps custodians in real-time, across currencies, Being part of Deutsche Börse Group set-up a modular and flexible asset classes and time zones while is a major strength enabling triparty offering for their custody offering cash re-investment and Clearstream to fully its customers collateral transformation services. triparty collateral services with This helps our customers to overcome our sister company Eurex Clearing fragmentation and manage their and their Lending CCP. collateral from a single pool across Collateralising uncleared securities lending

Clearstream offers proven triparty Features and benefits – Centralised collateralisation allows collateral management features – Economies of scale through borrowing from counterparties complemented by loan book outsourced loan and collateral at different locations and settlement. functions – Efficient collateral optimisation – Elimination of valuation disputes across products, asset classes, Services tailored to your needs by using a well-respected third counterparties and locations Model 1: Loan valuation and party agent settlement coupled with collateral – Efficient and precise daily exposure management valuation reports Model 2: Loan valuation coupled Bilateral trading: Loan Lender Borrower with collateral management Collateral basket Collateral receiver Bilateral trading: Collateral giver Model 3: Collateral management LoanTrade dates Lender Borrower CollateralSecurities basketlending fee service only Collateral receiver Collateral giver Trade dates SecuritiesTriparty Collateral lending fee Clearstream takes care of all Securities Account Securities administrative functions to collateralise (loan) Triparty Collateral (collateral) the customers loan book. Securities Account Securities (loan) (collateral)

Collateralising cleared securities lending

Clearstream customers can access Eurex Clearing’s unique central Bilateral trading: Loan counterparty (CCP) services Lender Borrower Collateral basket for the securities lending market Collateral receiver Bilateral trading: Collateral giver LoanTrade dates Lender Borrower where counterparty risk and CollateralSecurities basketlending fee Collateral receiver Collateral giver credit exposures are minimised Trade dates Securities lending fee for individual participants. Eurex Clearing Eurex Clearing offers integrated services for securities financing Eurex Clearing in combination with their , Payment Location Triparty Collateral (International) Central bond and equity products. Account Securities Depository Payment Location Triparty Collateral (International) Central The solution services multiple trading Account Securities Depository venues and flow providers from bilateral/OTC to electronically traded transactions while clearing is offered Features and benefits – Maximum efficiency from clearing across asset classes and markets. – Access to an additional source to collateral management of liquidity – Collateral can be re-used by – Minimised credit and systemic risk the lender towards multiple as the CCP is the counterparty exposures within Clearstream’s – CCP-cleared loans subject to much triparty environment (i.e. Triparty lower capital requirements Repo, GC Pooling and others) Contact – Increased yield for lenders – Efficient collateral optimisation as borrowers tend to pay more across products, asset classes, For further information, please contact for lower capital costs counterparties and locations your Relationship Manager or – Specific Lender License supports our Collateral Management team. the existing Agent Lender/ Beneficial [email protected] Owner relationship www.clearstream.com

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