EquiLend and Broadridge collaborate to streamline central clearing of SFTs
21 June 2023 US
Image: alphaspirit
EquiLend and Broadridge Financial Solutions have formed an agreement to facilitate straight-through processing (STP) to the National Securities Clearance Corporation’s (NSCC) central counterparty for equity securities finance transactions (SFTs).
The offering will allow clients to trade and automatically submit through the Broadridge SFT Submission Service without a large change in operational processes. It will also utilise EquiLend’s liquidity sourcing options.
Clients will profit from the capital cost and risk reduction benefits of central clearing through the new offering, according to the two firms.
The Broadridge SFT Submission Service aims to provide the market with the capability to meet the NSCC requirements to match and submit through an approved trade submitter.
EquiLend's 1Source — a distributed ledger technology (DLT)-based single source of truth for SFT lifecycle information — is designed to direct securities lending trades seamlessly to the NSCC for central clearing through Broadridge’s Trade Submitter Service.
According to EquiLend, more than 2.2 million global transactions are executed on the technology firm’s Next Generation Trading (NGT) platform each month, which translates to more than US$2 trillion in total notional value.
US equities, which are eligible for central clearing with the NSCC, form the largest segment of securities on loan in the global securities finance markets, the firm adds.
Commenting on the announcement, CEO of EquiLend Brian Lamb says: “We are pleased to be working with Broadridge to offer our clients streamlined access to the benefits of central clearing.
“EquiLend is committed to working with our partners in the industry to bring new efficiencies and unprecedented interconnectivity throughout the global securities finance marketplace.”
Darren Crowther, head of securities finance services at Broadridge, comments: “We are delighted to be able to offer our joint clients straight-through processing to central clearing via our SFT Submission Service platform.
“Interoperability across our platforms, as well as the entire trade lifecycle event workflow, will enable our clients to benefit from the advantages of the NSCC offering while minimising the time to market due to our out-of-the box connectivity.”
The offering will allow clients to trade and automatically submit through the Broadridge SFT Submission Service without a large change in operational processes. It will also utilise EquiLend’s liquidity sourcing options.
Clients will profit from the capital cost and risk reduction benefits of central clearing through the new offering, according to the two firms.
The Broadridge SFT Submission Service aims to provide the market with the capability to meet the NSCC requirements to match and submit through an approved trade submitter.
EquiLend's 1Source — a distributed ledger technology (DLT)-based single source of truth for SFT lifecycle information — is designed to direct securities lending trades seamlessly to the NSCC for central clearing through Broadridge’s Trade Submitter Service.
According to EquiLend, more than 2.2 million global transactions are executed on the technology firm’s Next Generation Trading (NGT) platform each month, which translates to more than US$2 trillion in total notional value.
US equities, which are eligible for central clearing with the NSCC, form the largest segment of securities on loan in the global securities finance markets, the firm adds.
Commenting on the announcement, CEO of EquiLend Brian Lamb says: “We are pleased to be working with Broadridge to offer our clients streamlined access to the benefits of central clearing.
“EquiLend is committed to working with our partners in the industry to bring new efficiencies and unprecedented interconnectivity throughout the global securities finance marketplace.”
Darren Crowther, head of securities finance services at Broadridge, comments: “We are delighted to be able to offer our joint clients straight-through processing to central clearing via our SFT Submission Service platform.
“Interoperability across our platforms, as well as the entire trade lifecycle event workflow, will enable our clients to benefit from the advantages of the NSCC offering while minimising the time to market due to our out-of-the box connectivity.”
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