EquiLend, a global securities finance technology company, and Broadridge Financial Solutions, Inc., a global fintech company, today announced a straight-through to the National Securities Clearance Corporation (NSCC) central counterparty (CCP) for equity securities financing transactions. announced a partnership to expedite processing (STP).
The new service will use EquiLend’s liquidity funding option. This allows clients to trade and automatically submit using the Broadridge SFT submission service. This operation will benefit from the capital cost and risk mitigation of central clearing, while there will be no significant changes to the operational process.
EquiLend CEO Brian Lamb commented:
We are pleased to work with Broadridge to provide our clients with streamlined access to the benefits of central clearing. EquiLend is committed to working with industry partners to bring new efficiencies and unprecedented interconnectivity across the global securities and financial markets.
Users of EquiLend 1Source, a DLT-based source of information for the securities finance industry, will be able to seamlessly direct securities lending trades to NSCC for central clearing via Broadridge’s Trade Submitter service.
Darren Crowther, Head of Securities and Financial Services at Broadridge, said:
We are pleased to offer joint customers straight-through processing to central clearing through our SFT submission services platform. Interoperability across our platforms and across trade lifecycle event workflows enables our clients to enjoy the benefits of NSCC services while minimizing time to market with out-of-the-box connectivity.
Broadridge’s newly launched SFT Submission service enables market participants to meet NSCC requirements to match and submit via an approved trade submitter.
EquiLend’s next-generation trading (NGT) platform will execute more than 2.2 million monthly global trades with a total notional value of $2 trillion, according to the official announcement. US equities represent the largest portion of securities loaned in the global securities finance market and are subject to centralized liquidation by the NSCC.
Earlier in April, Broadridge announced a new trading solution aimed at improving straight-through processing, reducing risk and improving trading decision-making.
