ALD

Agency Lender Disclosure (ALD)

Broker dealers are required to monitor credit exposure and calculate capital requirements based on securities lending transactions with their underlying principal lenders.

Leveraging established EquiLend infrastructure, EquiLend’s ALD service will facilitate the direct movement of data between agent lenders and broker-dealers to support not only the onboarding process of the principal lenders for the credit prequalification of principals, but also daily open positions and collateral traded between themselves to enable the ALD requirements to be met.

How It Works

  • Credit Prequalification

    Borrowers must actively prequalify each principal lender with whom they will transact.

  • Regulatory Capital Reporting

    Helps borrowers to perform regulatory capital calculations and credit exposure monitoring.

  • Comparison and Exception Reporting

    EquiLend produces comparison data with highlighted breaks. A selection of reports are available for review or download for the operations and credit groups.

Key Benefits

  • Send or receive ALD files with all counterparties, even if they are not EquiLend clients

  • Deliver and receive daily position and activity files through the EquiLend platform

  • Account management tools include broker affirmations of new principal accounts opened by agent lenders

  • Flexible exception rules accommodate differences in client proprietary systems

  • Persistent actions and comments allow users to track break history

  • Reporting displays lender contracts aggregated with totals

  • Exception reports highlight allocation and loan discrepancies

  • Compliant with SIFMA and ISLA standards

  • View the status of principals in the browser

Next Generation Trading (NGT) is a multi-asset class trading platform for the securities finance marketplace. With tens of thousands of trades conducted on the platform around the globe each day, NGT offers unparalleled liquidity in the securities finance market.

EquiLend
Iain Mackay

Iain Mackay

Global Product Owner
Post-Trade Services
+44 20 7426 4402

Rowena Brown

Rowena Brown

Director
CRM
+44 20 7426 4412