EquiLend

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

  • Access all market services via an API connection or our Web-based application
  • Identify market liquidity including the depth of the market, last traded rate and floating rate versus OBFR overnight published rates
  • Upload a spreadsheet with borrow needs or loan supply
  • Execute trades on our proprietary trading screens, custom built for securities lending market participants
  • Lender supply and borrower demand are automatically matched and immediately sent to OCC for clearance and settlement
  • Transact with all OCC Market Loan Program approved counterparties
  • Supports lifecycle events, including returns, recalls, rerates, marks and corporate actions

Benefits

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

  • Clients conduct their normal bilateral trading activity using the NGT platform.
  • Once both sides of the transaction match, the transaction is sent to the ECS Gateway and on to Eurex Clearing for clearance and settlement.
  • ECS will then communicate settlement, mark to market, billing and asset servicing information from Eurex Clearing in real time to the counterparties.
  • The flexibility exists to allow for straight-through processing for all activity or the use of our screen-based solution.

Note: To use EquiLend Clearing Services CCP Connectivity, both counterparties to the trade must be using ECS as their third-party flow provider.

Benefits

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.

Matt Collins
Director
Markets & Trading, ECS
matt.collins@equilend.com
+1 (646) 767 4314 

John Surgent
Associate Director
ECS Gateway 
john.surgent@equilend.com
+1 (646) 767 4325