Automated Securities Lending (ASL)
ASL lies at the heart of Clearstream’s settlement engine and acts as lender of last resort, preventing failures and enhancing settlement efficiency through automated loans. This is a unique service, as the fails lending product is so highly integrated into the settlement process.
With just one contract, borrowers gain access to a large pool of undisclosed lenders, speeding reception of the proceeds from counterparties. The ASL guarantee reduces counterparty risk for lenders. Lenders can advise Clearstream of the positions available for lending via the lender download facility. This is of particular use to lenders with mixed assets. Lenders benefit from waived custody fees on lent positions.
In addition to fully automated services, Clearstream also provides case-by-case securities lending and borrowing. Customers enjoy complete control as they lend and borrow in accordance with their own risk profile and other strategies.