Cboe Global Markets, Inc. announced that its pan-European clearing house, Cboe Clear Europe N.V., will expand its Securities Financing Transactions (SFT) clearing service to include U.S. equities starting in mid-October. This development marks a significant step in Cboe’s strategy to enhance central clearing in the global securities lending market.
The expansion will initially support SFTs for U.S. equities in the Russell 3000 Index and the top 500 U.S.-listed exchange-traded funds (ETFs). Over time, Cboe plans to broaden its service to cover its complete U.S. equities trading universe, which consists of approximately 12,000 symbols. Settlement for these securities will take place via the Depository Trust Company (DTC), adhering to U.S. best practices, with BNY acting as the settlement agent. The SFT clearing for U.S. equities will initially be available only to non-U.S. lenders and borrowers, similar to the service’s existing approach for eligible U.S. corporate bonds and Treasuries.
Vikesh Patel, Global Head of Clearing and President of Cboe Clear Europe, emphasized that this expansion aligns with their vision of providing a global securities lending service. He stated, “Expanding to offer SFTs with U.S. equities is another major step toward our vision of a global securities lending service, and underscores our commitment to delivering innovative solutions that create meaningful capital and operational efficiencies for market participants.” Patel noted the strong adoption of the service since its launch, reflecting the industry’s recognition of central clearing benefits.
Cboe Clear Europe launched the SFT service in 2025, initially focusing on loans of European equities and ETFs. The service introduced central clearing to a market that traditionally operated on a bilateral basis. It has attracted participation from significant players in the securities lending market, including numerous UCITS and non-UCITS beneficial owners. Additionally, the service was recently extended to include lending of fixed income instruments, achieving a record €14 billion in outstanding loan value in September 2026.
The SFT service provides an all-encompassing solution for trade matching, central clearing, and post-trade lifecycle management, enhancing capital efficiency and streamlining settlement, reporting, and client onboarding. Cboe Clear Europe employs an innovative “special clearing member” model, allowing beneficial owner lenders such as pension funds and UCITS to use the service without posting margin or contributing to the default fund, thus unlocking broader lending liquidity.
Jan Treuren, Head of Product at Cboe Clear Europe, indicated that the expansion into SFTs with U.S. equities was a direct response to client demand for a more globally consistent securities lending clearing solution. He remarked, “Working closely with market participants, we have designed the service around existing workflows, settlement practices, and market conventions, making adoption as seamless as possible.”
