EquiLend 1Source
The securities finance trade lifecycle is fraught with blockers and siloes: mismatched trades, poor collateral mobility, specific collateral requirements, poorly managed SSIs, conflicting cut-off times and reporting requirements which vary by region and counterpart.
Additionally, each party stores its own copy of every contract, applying updates, pricing and other reference data independently. This commonly results in mismatches in information between two counterparties, causing incorrect accruals and settlement failures.
Lack of transparency, time costs and financial penalties are the price of these disconnected systems. Current technology solutions focus on reconciling disparate data points after these “breaks” happen. 1Source takes a different view: that the best time to solve a problem is before it happens.
1Source removes these common lifecycle event mismatches right at source. Built on Distributed Ledger Technology (DLT) and running on the Canton Network, trade lifecycle data is always in sync with 1Source in your tech stack.
So how does it work?
EquiLend 1Source serves as a single source of truth for the securities finance industry, offering:
Universal source of data for the industry
Established operating procedures that produce predictable and consistent results for participants
A central record of agreements made between parties
Features of EquiLend 1Source
EquiLend 1Source is a distributed ledger (DLT) based single source of truth for securities finance transactions that removes common lifecycle event mismatches which lead to reconciliation breaks, at their source. Running on the Canton network, trade lifecycle data is always in sync with EquiLend 1Source in your tech stack.
Single source of truth:
Acts as a shared digital ledger across counterparties, eliminating discrepancies and ensuring consistent reference data.
Streamlined operations:
Simplifies workflows by reducing the need for reconciliation efforts and manual interventions, aligning all participants with the same data.
Future–ready technology:
Interoperable with other ledgers via the Canton Network, supporting fast-moving regulatory changes, higher transaction volumes and quicker settlements.
Here's How it Works
Industry-Wide Benefits of EquiLend 1Source
Operational
Efficiency:
Reduces labor costs, saving an estimated $42 million annually across the industry by minimizing annual reconciliation and operational handling.
Cost and Resource Optimization:
Saves technology, expenses ($33 million estimated annually) by downsizing infrastructure and modernizing tech stacks.
Enhanced
Profitability:
Improves P&L impacts, with industry gains estimated at $32 million annually, by eliminating settlement fails and rate discrepancies.
Data Source: Single Source of Truth Initiative: Vy Solutions, May 2022
Open the door to perfectly synced data, always, for both parties in a trade with 1Source.
The strongest offense is a good defense.
With increasing volumes, shorter settlement cycles and tech and operations being reduced, now is the time to defend your firm’s capabilities with 1Source.
EquiLend 1Source was pioneered by an EquiLend-convened Digital Transformation Working Group made up of market participants representing a broad cross-section of the industry, with a goal of solving key challenges facing the industry. The initiative harnesses emerging technologies such as DLT to develop a future-proof securities finance market.
The first undertaking of the Working Group, to eliminate the reconciliation of securities finance transactions, was identified by the working group as the most pressing issue facing the industry.
EquiLend 1Source is available industry–wide and interoperable with any vendor, utility or other party interested in connecting. Click here to learn more about how we are efficiently transforming the industry with EquiLend 1Source – and how you can join the movement.