Next Generation Trading (NGT)
NGT offers unparalleled liquidity in the securities finance market
Next Generation Trading (NGT) is a multi-asset class trading platform for the securities finance marketplace. Accessed through NGT’s intuitive, Web-based user interface or via full automation using our proprietary messaging protocol, NGT offers access to global securities finance trading to firms of all sizes.
With tens of thousands of trades conducted on the platform around the globe each day, NGT offers unparalleled liquidity in the securities finance market. NGT’s strategic features increase trade-level transparency, improve workflow automation and generate efficiencies market wide. Navigate the complexities of the market with NGT, built to simplify, optimize and revolutionize your trading.
Ensure T+1 Readiness with EquiLend
Key Stats
Firms using NGT globally each day
NGT active in
markets
Notional on average traded on NGT each day as of July 2024
Notional: highest notional traded in a single day on NGT on June 24, 2024
Domiciles of assets traded
NGT Features
T+1
Ready
NGT is available 24 hours a day for real-time securities lending trading between lenders and borrowers, including traditional stock loan and fixed income lending as well as to cover settlement fails. New counterparties benefit from free onboarding and integration.
Auto
Response
For screen lenders, the NGT user interface may be configured to have trades be automatically accepted, or rejected based on user-supplied parameters
Integration with
ECS for CCP Trades
NGT is connected to EquiLend Clearing Services (ECS) to facilitate CCP trades via various Central Counterparties
Robust STP Capabilities
NGT offers a full set of messaging protocols to allow clients to connect to the NGT engine for straight-through processing capabilities
Regulatory Point
of Trade Execution
EquiLend SFTR offers clients full SFTR support with UTI generation and execution time stamp at the point of trade.
Ease of Integration
NGT offers various ways for clients to connect into the eco-system. An intuitive web-based interface allows for traders to transact over the platform, providing a best-in-class user experience while going about their day-to-day trading activities. This includes a real time Order Book, Trade Blotter and a robust series of filters and screen downloads.
For clients who prefer Straight-Through Processing (STP), EquiLend offers a full set of messaging protocols to connect straight into the NGT engine. Borrow requests, Trade offers, execution and trade bookings can all be fully integrated into our clients’ proprietary systems, combining the power of NGT and our clients’ systems for a seamless front-office workflow solution.
NGT is designed and built for full interoperability between the different modes of integration, meaning clients can be fully agnostic to how their counterparties use NGT.
Monthly Trading Volumes
Multiple Entry Points Into The NGT Eco-System, Catered To Your Borrowing And Lending Needs:
Targeted Availability - Unprecedented Transparency and Liquidity
NGT’s Targeted Availability workflow delivers transparency to inefficient market processes. Targeted Availability increases the correlation and relevance between Offers and Bids. Lenders actively publish executable inventory, visible to borrowers, who respond to Targeted Availability resulting in higher execution rates and dual benefit to lenders and borrowers. Lenders realise higher asset utilization, while borrowers fill their needs more efficiently
Indications of Interest -
Market Discovery
Borrowers can reach out to multiple lenders to communicate interests for securities. NGT’s Indication of Interest (IOI) functionality uses a proprietary Natural Language Processing (NLP) algorithm to efficiently process emails, standardizing it into a system-readable format for lending counterparts
Firm Bids – Low Touch General
Collateral (GC) Trading
Borrowers can also choose to initiate firm borrow requests to their lending counterparts via NGT for their daily GC borrowing needs. NGT’s messaging capabilities allow for counterparties to communicate seamlessly with one another for a fully automated borrow and lending workflow, system to system
NGT Chains
Borrowers have the ability to set up a pre-defined order of lenders they want to transact with, and allow NGT to route borrow requests sequentially, eliminating the need for the borrowers to send in multiple lists and preventing over-borrows.
Competitive Bid
A hybrid workflow for the hard-to-borrow market, leveraging Real-Time Data and Post-Trade insights within NGT to centralize and enhance trading decisions.
Linking It All Together
The various NGT features allow clients the flexibility to pick and choose the different workflows that cater to their needs. For example, clients can use the IOI and Targeted Availability features to negotiate the warm and hard-to-borrow names, while using the Firm Bid feature to handle their GC transactions with their counterparts