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

  • 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

Matt Collins

Director
Markets & Trading, ECS
+1 (646) 767 4314

John Surgent

Associate Director
Head of NA Post-Trade Services
+1 (646) 767 4325