Meaning of AUTOMATED SECURITY LENDING PROGRAMME in English

AUTOMATED SECURITY LENDING PROGRAMME

A financial operation combining repo and reverse repo transactions where specific collateral is lent against general collateral. As a result of these lending and borrowing transactions, income is generated through the different repo rates of the two transactions (i.e. the margin received). The operation may be conducted under a principal-based programme, i.e. the bank offering this programme is considered the final counterparty, or under an agency-based programme, i.e. the bank offering this programme acts only as agent, and the final counterparty is the institution with which the security lending transactions are effectively conducted.

European Central Bank English Glossary.      Английский глоссарий Европейского Центрального Банка.