New Securities Lending Exchange Finds CCP
Clearing Quarterly and Directory, March 19, 2008
Lendex LLC, looking to establish an electronic securities lending exchange, signed an agreement with a small trust company to act as the exchange's central credit counterparty (CCP). Alaska USA Trust Company-one of the smaller trust companies, compared with banks like State Street or Northern Trust-will not bring inventory for lending, but will ensure the credibility of transactions on the exchange and guarantee them. Officials of Alaska USA Trust said their direct links to the industry utility are important to any new securities lending platform.
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