Global securities finance technology firm EquiLend and global Fintech company Broadridge Financial Solutions, Inc. today revealed their collaboration to facilitate straight-through processing (STP) to the National Securities Clearance Corporation’s (NSCC) central counterparty (CCP) for equity securities finance transactions.
The new offering will use EquiLend’s liquidity sourcing options. It will enable clients to trade and automatically submit using Broadridge SFT Submission Service. The operation will not have a large change in operational processes while benefitting from the capital cost and risk reduction benefits of central clearing.
Brian Lamb, CEO of EquiLend, commented:
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.
Users of EquiLend 1Source, a DLT-based source of information for the securities finance industry, will be able to direct securities lending trades seamlessly to the NSCC for central clearing via Broadridge’s Trade Submitter Service.
Darren Crowther, Head of Securities Finance Services, Broadridge, said:
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 minimizing the time to market due to our out-of-the box connectivity.
The newly launched SFT Submission Service from Broadridge allows market participants to meet the NSCC requirements to match and submit via an Approved Trade Submitter.
According to the official announcement, over 2.2 million global transactions are executed on EquiLend’s Next Generation Trading (NGT) platform per month, amounting to $2 trillion in total notional value. US equities, which make up the largest segment of securities on loan in the global securities finance markets, are eligible for central clearing with the NSCC.
Earlier in April, Broadridge launched a new trading solution aiming to improve the straight-through processing, reduce risk, and improve trading decisions.
