Deutsche Borse-owned Eurex Clearing has announced that PGGM, the Dutch pension fund provider, has become the first buy-side client of its own central counterparty model for securities lending.

PGGM, which offers institutional clients asset management, pension fund management, policy advice and management support, represents the first direct participant of Eurex Clearing’s securities lending central counterparty (CCP).

Eurex Clearing will connect with the Dutch firm using the “full capabilities” of EquiLend, the provider of trading and post-trade services for the securities finance industry.

Deutsche Borse Group said in a statement on Tuesday that this solution is part of its strategy to offer new solutions for increasing the capital and operational efficiencies of members, by supporting the bilateral, relationship-driven characteristics of the securities lending market.

Roelof van der Struik, investment manager treasury trading and commodities at PGGM, highlighted how the CCP model enables new stock lending structures and business opportunities for beneficial owners as well as helping to manage the rising burden of balance sheet regulation and costs for the securities lending market.

The announcement comes after van der Struik spoke in February this year of PGGM’s plans to connect with Eurex to clear securities lending trades.

“We’re looking to get the plumbing in place after three or four years of sitting on the fence,” he told Global Investor on February 28. “The idea of centrally cleared stock loan trades is gaining traction.

Brian Lamb, CEO of Equilend, anticipates greater usage of its link to Eurex, as the securities finance industry looks to realise the benefits of a CCP model.

“The focus on CCP solutions continues to increase, driven by the need for cost and operation efficiencies,” Lamb added. The lending CCP reduces counterparty risk exposure and eliminates the need for multiple credit evaluations.

Eurex Clearing is the only infrastructure provider with an integrated clearing offering across derivatives, equities, securities lending and repo transactions, according to Deutsche Borse.

Eurex also announced on Tuesday that it will launch the first on-exchange corporate bond futures on September 19.

The corporate bond index future, based on the Euro Stoxx 50 corporate bond index, will be a cash-settle index future with a quarterly expiry and will be centrally-cleared.