From April, Eurex Clearing will accept five of BlackRock's iShares as collateral, making it the first clearing house to accept ETFs as collateral. The move comes as new regulations increase demand for collateral. BlackRock, BNY Mellon, State Street and Markit have called for greater use of ETFs in securities lending as the sector continues to expand. In a statement, BlackRock said that its "commitment is to provide access to capital markets through our own products and services while also providing liquidity to clients by offering them exposure to exchange-traded fund@@
From April, Eurex Clearing will accept five of BlackRock's iShares as collateral, making it the first clearing house to accept ETFs as collateral. The move comes as new regulations increase demand for collateral. BlackRock, BNY Mellon, State Street and Markit have called for greater use of ETFs in securities lending as the sector continues to expand. It is thought the increase in the scope of acceptable collateral could significantly boost the ETF market.