CASE STUDY: NORTHERN TRUST

As one of the largest securities lenders in the world, Northern Trust has always promoted the use of technology to support and grow their business. EquiLend has been an essential component of Northern Trust’s lending activity, allowing them to maintain their reputation for automation, connectivity, and efficiency as well as increase the number of borrowers they transact with and markets they lend in. EquiLend also promotes volume growth, allowing traders to concentrate on high intrinsic value securities.


THE EQUILEND SOLUTION

Northern Trust’s use of EquiLend’s AutoBorrow trading service has prompted an increase in general collateral volume in most of the major markets. It offers a standardized solution across all markets with all participating borrowers. By implementing EquiLend AutoBorrow, Northern Trust has significantly expanded the number of borrowers on their platform. Prior to joining EquiLend, Northern Trust was using AutoBorrow capabilities with 5 borrowers in 6 non-US markets. Today, they are trading with 24 borrowers in 14 different markets. The EquiLend AutoBorrow functionality has also enabled Northern Trust to completely automate their trading environment for exclusive arrangements.

EquiLend’s post-trade services, which support Northern Trust’s operations processes, have been of enormous benefit to their securities lending operations from both a process efficiency and risk mitigation perspective. EquiLend’s post-trade services cover the full post-trade lifecycle of a loan. For example, approximately 80 percent of Northern Trust’s international loan volume flows through EquiLend's Contract Comparison service.  Linking EquiLend AutoBorrow with its robust post-trade functionality has allowed them to achieve higher levels of efficiency and straight-through processing capability, allowing Northern Trust to remain a key provider of supply to borrowers and a leader in the securities lending industry. The on-line comparison tools also provide much-needed real-time communication between borrowers and lenders. Northern Trust’s ability to leverage the full suite of EquiLend offerings, from pre-trade through post-trade, has supported their position as an industry leader.


“Northern Trust is proud to be a founding member of EquiLend, which leverages technology to create efficiency and liquidity in the securities lending market.”

- Northern Trust

NORTHERN TRUST USES

ALD

ALD

EquiLend worked with industry leaders from the very beginning to design, develop, test, and launch ALD solutions.

AutoBorrow

AutoBorrow

Automated low-touch securities finance trading between lenders and borrowers.

Billing Comparison

Billing Comparison

Offers a monthly payable and receivable comparison, with a direct link to contract-level day-by-day detail.

Billing Delivery

Billing Delivery

Reduces the need to produce and mail bulky monthly paper billing statements.

Contract Comparison

Contract Comparison

A standardized process that identifies true breaks, improves risk management, and increases operational efficiency.

Dividend Comparison

Dividend Comparison

Dividend Comparison allows for the comparison of manufactured dividend claims.

Market-To-Market Comparison

Mark-to-Market Comparison

Allows users to compare marks using customizable tolerances that can be adjusted based on collateral currency and mark amount

Recalls

Recalls

Offers lenders and borrowers a simple way to issue and manage recalls (ARMS, US only).

Returns

Returns

Enables borrowers and lenders to automatically return and track assets borrowed using EquiLend or any other trading method.

Trade 2 O

Trade2O

A front-end trading system for traders to borrow and lend all types of securities through the EquiLend platform.

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