Under the new process, SLRs can be settled on the same business day as the original stock loan, removing the previous requirement for minimum settlement to be the next day. This change is expected to improve liquidity in the market, streamline settlement workflows and enhance the efficiency of collateral movements.
To ensure appropriate control and bilateral agreement, Euroclear has introduced new operational safeguards. Same‑day settlement will only occur if the lender explicitly approves the return by increasing the settlement priority within CREST. If approval is not granted, the SLR will automatically roll to settlement on the next business day, consistent with current practices. These measures keep lenders fully in control of the process while allowing borrowers and collateral managers greater flexibility.
The initiative has been actively supported by the International Securities Lending Association (ISLA), which worked closely with Euroclear through industry working groups to ensure the solution meets member expectations and is operationally ready for adoption.
