ECS Loan Market
EquiLend Clearing Services (ECS) provides direct connectivity to CCPs for central clearing of securities finance trades. Our services offer powerful trading and post-trade tools that improve efficiency and mitigate risk. They integrate into a firm’s existing environment and can be fully automated. The ECS Gateway provides a central point for all matched transactions to flow directly to a CCP, while delivering real-time updates on settlement back to clients. ECS also offers a front-to-back solution from trade execution through the lifecycle of the trade, including support for returns, recalls, rerates and corporate actions.
Benefits
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Covers all OCC-eligible securities, including over 6,000 underlying equities, ETFs and ADRs
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Offers access to wide marketplace of U.S. broker-dealer counterparties active in securities lending
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Facilitates CCP legal and credit intermediation between lenders and borrowers, reduces balance sheet risk profile and improves overall capital footprint
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Delivers fully automated, real-time, straight-through settlement processing once trade is matched and with near-time settlement status updates
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Enables flexible connectivity solutions, including API system-to-system services and browser-based screen access
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Improves operational efficiency through trading and post-trade tools that ensure synchronization of lender, borrower and CCP recordkeeping while eliminating contract comparison breaks
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Enhances risk mitigation for both borrowers and lenders via the CCP guarantees
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Provided through Automated Equity Finance Markets, Inc., a FINRA-regulated broker-dealer operating an SEC-registered Alternative Trading System (ATS) with a proven track record in securities lending technology
How It Works
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Access all market services via an API connection or our Web-based application
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Identify market liquidity including the depth of the market, last traded rate and floating rate versus OBFR overnight published rates
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Upload a spreadsheet with borrow needs or loan supply
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Execute trades on our proprietary trading screens, custom built for securities lending market participants
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Lender supply and borrower demand are automatically matched and immediately sent to OCC for clearance and settlement
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Transact with all OCC Market Loan Program approved counterparties
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Supports lifecycle events, including returns, recalls, rerates, marks and corporate actions
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Participants in the ECS Loan Market face the OCC on an anonymized basis; OCC is the counterparty