TA/EquiLend Gateway: A conduit to liquidity

The EquiLend Gateway App offered by Trading Apps serves as the digital highway between a securities lending business and the EquiLend community. Chris Valentino, sales and client director for the Americas at Trading Apps, explains

Let’s face it, the global securities lending market continues to be a predominantly fractured marketplace. And while some of the pockets of liquidity are relatively new, such as EquiLend’s Next Generation Trading (NGT) and EquiLend Clearing Services (ECS) products, many transactions continue to happen the old fashion way: via email, Bloomberg, instant message and the telephone.

With the increased cost of capital continuing to exert pressure on the industry, market participants are finding that technologies supporting trade automation and straight-through processing are no longer a luxury, but rather a necessity.

At Trading Apps, we have recognised the tangible value that speed, automation and efficiency can provide to a securities lending business since our foundation in 2011. Our targeted applications continue to raise the bar regarding trade and process automation, transparency, revenue optimisation and risk mitigation.

Just recently, Trading Apps embarked on a new relationship with a US broker-dealer that is an extremely active lender in the US specials market. Like many participants in the market, this broker-dealer was looking for a way to gain access to liquidity in the most efficient and automated way possible.

The EquiLend NGT platform appeared to be the perfect fit with its growing popularity, impressive client roster, and standardised approach to conducting business. However, connecting to this pocket of liquidity presented a challenge. This particular broker-dealer (as do many others) utilises FIS Smart Loan as its front-end trading system. Capitalising on the growing liquidity on the EquiLend NGT platform meant being able to dynamically link the FIS Smart Loan platform to EquiLend NGT. This is where Trading Apps stepped in.

The EquiLend Gateway App offered by Trading Apps serves as the digital highway between a securities lending business and the EquiLend community. In this particular case, the app is serving as a digital translator between FIS Smart Loan and EquiLend’s NGT platform. The previously mentioned broker-dealer has recently gone live with the app and is engaging in both borrowing and lending activities. The client is already experiencing an uptick in trading volumes with 1,000 additional trade messages being processed on a daily basis.

In the coming months, the client will roll out the availability portion of the project to round out the workflow. Once that is complete, the client will have the ability to post its real-time targeted availability (with rates) throughout the day. Counterparties that are on the EquiLend NGT platform will be able to consume that availability and dynamically respond with EquiLend AutoBorrow requests. Those requests will be translated by Trading Apps and fed seamlessly into FIS Smart Loan for processing.

This is just one example—and with one client—of how Trading Apps is collaborating with other vendors in the marketplace and providing solutions that enhance the speed, automation and revenue generating capabilities of our clients.

In this particular case, we have demonstrated our flexibility by connecting our EquiLend Gateway App to the FIS Smart Loan platform; our speed, by implementing at a market-leading rate; and our sophistication, by designing a workflow that has provided this client with a transformational experience, and a competitive advantage in the marketplace.
The latest features from Securities Lending Times
ESMA has set about tackling the thorny issue of conflict of interests within central counterparties under EMIR, with the help of industry participants. Jenna Lomax examines the industry’s responses to the consultation
Collateral managers must embrace innovation and strive for greater efficiency in processing. Jenna Lomax reports from Amsterdam
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Anand Krishnan of Natixis Americas explains how regulatory pressures are changing the rules of the game and buy-side entities are changing with it
David Raccat, CEO of Wematch.SecuritiesFinancing, offers a technological recipe for success as the market becomes more demanding and complex
Donald Trump’s presidency has caused all kinds of controversy, but what about his plans for banking regulation? Experts debate his plans to do a “big number on Dodd-Frank”, Obama’s flagship post-crisis legislation
For those on the front lines of the securities lending industry it’s easy to forget that, for beneficial owners, the trials and tribulations of regulatory compliance and the ever-raging debate around the use of central counterparties (CCPs) are only of passing concern
Mirae Asset Securities (USA) is now operational in the securities lending, repo, foreign research distribution, corporate access and agency execution businesses.
Experts debate whether equities as collateral will ever be acceptable
Country profiles
The latest country profiles from Securities Lending Times
Francisco Thiermann of IBM says the imminent launch of Chile’s securities lending blockchain solution will provide a shot in the arm for the market
Zubair Nizami, head of Asian securities lending trading at Brown Brothers Harriman talks to Drew Nicol about the state of the industry in the region
Asset Servicing Times

Visit our sister site
for all the latest asset servicing news and analysis

Being an exciting emerging market is all well and good, but how long can that status really apply before interest wanes? India is doing its best not to find out
Hugh Leonard, director of repo sales at Australia and New Zealand Banking Group, explains how the Australian market has excelled in recent years
Securities lending is in a strong place in Australia. Dane Fannin, head of capital markets in the Asia Pacific at Northern Trust, explains the available opportunities
Federico Ortega Gilly of Mexico’s Nacional Financiera explains why his country’s securities lending market is ripe for foreign investment
Russia’s National Settlement Depository has had a busy year making its securities finance market more robust and attractive to outside investors. The CSD’s Alina Akchurina explains the innovations being implemented
South Africa’s securities lending industry is on the verge of embracing a modern T+3 settlement cycle that could boost the country’s market
The latest interviews from Securities Lending Times