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

Trade execution lifecycle management in single-name equity TRS
Reset, maturity and unwind notifications
Basket maintenance and advisory of key swap attributes including corporate actions, upcoming resets and maturity dates
Hard to borrow indicator for improved optimization
Customization of term sheets
Data analytics and benchmarking of portfolio activity relative to the broader marketplace
Short sale restricted notifications
Read-only functionality for trade support and datacapture obligations

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

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
Participants in the ECS Loan Market face the OCC on an anonymized basis; OCC is the counterparty

EquiLend Clearing Services