EquiLend Clearing Services
EquiLend Clearing Services (ECS) provides direct connectivity to CCPs for central clearing of securities finance trades. Our services offer powerful trading and post-trade tools that improve efficiency and mitigate risk. They integrate into a firm’s existing environment and can be fully automated. We currently have connections to OCC and Eurex, and have delivered a solution that is portable across CCPs globally. The ECS Gateway provides a central point for all matched transactions to flow directly to a CCP, while delivering real-time updates on settlement back to clients. ECS also offers a front-to-back solution from trade execution through the lifecycle of the trade, including support for returns, recalls, rerates and corporate actions.
EquiLend Clearing Services Loan Market
The EquiLend Clearing Services (ECS) Loan Market currently offers the only CCP-based securities lending market for U.S. equities, ETFs and ADRs. The ECS Loan Market provides activity to OCC’s centrally cleared Market Loan Program for securities lending clearance and settlement services. Integrating trade execution, clearance and settlement through the full trade lifecycle, the ECS Loan Market enables U.S. broker-dealers to benefit from the centrally cleared model for their securities lending business.
How It Works
Covers all OCC-eligible securities, including over 6,000 underlying equities, ETFs and ADRs
Offers access to wide marketplace of U.S. broker-dealer counterparties active in securities lending
Facilitates CCP legal and credit intermediation between lenders and borrowers, reduces balance sheet risk profile and improves overall capital footprint
Delivers fully automated, real-time, straight-through settlement processing once trade is matched and with near-time settlement status updates
Enables flexible connectivity solutions, including API system-to-system services and browser-based screen access
Improves operational efficiency through trading and post-trade tools that ensure synchronization of lender, borrower and CCP recordkeeping while eliminating contract comparison breaks
Enhances risk mitigation for both borrowers and lenders via the CCP guarantees
Provided through Automated Equity Finance Markets, Inc., a FINRA-regulated broker-dealer operating an SEC-registered Alternative Trading System (ATS) with a proven track record in securities lending technology
Eurex Clearing Connectivity
As a third-party flow provider, EquiLend Clearing Services (ECS) offers connectivity to Eurex Clearing’s Lending CCP. ECS leverages EquiLend’s suite of trading and post-trade services coupled with the ECS Gateway to allow for trade execution/matching and management of all lifecycle events.
ECS allows EquiLend’s market participants to leverage their existing infrastructure to make the management of CCP activity consistent with traditional bilateral activity.
How It Works
Note: To use EquiLend Clearing Services CCP Connectivity, both counterparties to the trade must be using ECS as their third-party flow provider.
Provides access to Eurex Clearing’s Lending CCP via a trusted technology provider
Leverages existing EquiLend trading and post-trade technology, simplifying the Lending CCP connection for current EquiLend users
Fully automated, real-time status updates
Automated best practice approaches to exposure management, asset servicing and settlement risk
Global solution that can be used for many CCPs
Standard process for bilateral and CCP-novated trades
WHO WE ARE
EquiLend is a leading provider of trading, post-trade, market data and clearing services for the securities finance industry with offices in New York, Boston, Toronto, London, Dublin, Hong Kong and Tokyo.
EquiLend is owned by Bank of America Merrill Lynch, BlackRock, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, National Bank of Canada, Northern Trust, State Street and UBS.