The Spanish central counterparty, BME Clearing, and the Swiss Central Securities Depository, SIX SIS, are to be connected, following approval by the Spanish stock market supervisor, Comisión Nacional del Mercado de Valores.
The connectivity between the two entities will bring efficiencies and benefits to clients in managing and optimising their collateral needs, says BME.
Through the connectivity, BME Clearing will be able to offer its clearing members an additional option for posting securities collateral into BME Clearing’s collateral account.
BME Clearing members that are also SIX SIS participants will be able to post securities collateral directly into BME Clearing’s collateral account across the SIS platform.
Transfers will be made by means of bilateral instructions between the member and BME Clearing.
The eligible collateral will be European government bonds issued by Spain, Germany, France, the Netherlands, Belgium, Austria, Italy and Portugal, as well as the UK and the US.
José Manuel Ortiz, head of clearing and repo operations at SIX, says: “By taking this new step forward in the integration we are able to offer new services and opportunities to our clients, both in Spain and Switzerland. This is yet another example of the advantages of being part of the third largest infrastructure group in the European market.”
