Bulgarian Stock Exchange AD (‘BSE’) and Central Depository AD (‘CDAD’) have announced the launching of a platform for lending of financial instruments which will use the T7 trading system infrastructure.
Thanks for the new securities lending platform, investors will be able to lend or borrow for a certain period financial instruments which are constituents of the BSE indices. This activity will require the conclusion of standardized lending agreements between BSE members. Only cash collateral for the borrowed financial instruments will be accepted and it will be managed by CDAD.
The securities lending platform is expected to increase the liquidity of the Bulgarian capital market, as well as to activate short selling and build the foundation for the development of a derivatives market.
Impact on investors: Lending and borrowing of certain financial instruments listed on Bulgarian Stock Exchange is now possible via a new platform managed by the stock exchange in collaboration with Central Depository AD.