Securities Lending

The securities purchased under the PSPP and PEPP are available for securities lending. The aim of securities lending is to support bond and repo market liquidity without unduly curtailing normal repo market activity. The Central Bank of Ireland lends securities via two channels:

On a bilateral basis
Via Euroclear's GC access programme

View a list of the bonds available for securities lending. The Central Bank's CBPP3 holdings are also available for securities lending via Euroclear. Information on the availability of CBPP3 holdings can be obtained directly from Euroclear.

Bilateral Securities Lending

In line with the Governing Council decision of 8 December 2016, the Central Bank will accept cash as collateral in the PSPP securities lending facilities from 15 December 2016. This also applies to PEPP.


Type of operations	i) Cash neutral - 'Repo/Reverse Repo' transactions on a bilateral basis with matched cash settlements; ii) Cash collateral - Repo transactions on a bilateral basis, where the offsetting reverse repo is not applicable
Eligible collateral for 'Repo/Reverse Repo' transactions	Eligible euro-denominated securities with a maturity of up to 10 years within Central Bank's credit limit framework
Eligible counterparties	Counterparties that are eligible to trade with the Central Bank as per the credit limit framework and have signed relevant legal agreements
Tenor	1 week
Maximum amount	Limits are based on the Central Bank of Ireland’s credit limit framework for both 'Repo/Reverse Repo' and Repo transactions
Pricing	i) For cash neutral - 'Repo/Reverse Repo' transactions, market based pricing subject to a minimum fee of 5 basis points is applied. ii) For cash collateral - Repo transactions, a rate equal to the lower of the deposit facility rate minus 20 basis points and the prevailing market repo rate is applied.
Haircuts	Haircuts as per the Central Bank's credit limit framework

Eligible counterparties who have a Global Master Repurchase Agreement (GMRA) in place, or who wish to put one in place, can contact the Market Operations Desk at [email protected].

More information on the General APP securities lending framework can be found on the ECB’s website, including aggregated data on the securities lending activity of the Eurosystem.

Fails Prevention Programme

The Central Bank has made the securities it purchases under the PSPP available for fails prevention lending through its bond custodian, Euroclear Bank S.A./N.V.