From recent years, 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.
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.