EquiLend's securities finance platform has hit an all time daily high with over USD 20 billion in trade value.
EquiLend states its growth during the last 12 months is due to increase in clients and an expansion into supporting the global fixed income market. The numbers indicate a continued movement towards greater automation and efficiency within securities finance.
"Since this time last year, EquiLend has had an increase in its client base of 70%, indicating firms are realizing the key benefits of centralizing and standardizing all of their securities finance business" states Brian P. Lamb, Chief Executive of EquiLend from the firm's New York office.
"That increase in clients has resulted in daily values of all trades executed through the platform up 67% since the same period last year. In Fixed Income alone, the numbers have increased 80%', adds Lamb.
Eugene Picone, EquiLend Chairman and Senior Vice President, JPMorgan,
Securities Lending Division adds, "There are a number of reasons why a firm would want to use EquiLend. From JPMorgan's perspective, we see the value in the overall economies of scale that we have been able to extract from the system. In the last year we have increased balances by over 100% and enjoyed a 20% improvement in our cost efficiency ratio. For other participants, the cost story is also true, but also more compelling is the centralized access to counterparties. The technology allows them to compete in a way that they never could."
EquiLend has recently won a number of new clients, including Barclays Capital, ABN AMRO, Mellon Bank and Societe Generale. Sharon Walker, Managing Director of EquiLend Europe based in London, notes: "Many of the recent joiners in Europe are opting for EquiLend's Express Solutions offering, an expedient route to market, with plans to migrate over to the full-featured platform, EquiLend Complete Solutions."
EquiLend Holdings LLC was formed by a group of leading financial institutions to develop a global platform for the automation of securities lending transactions. The EquiLend platform is designed to process equity and fixed income securities lending transactions on a global basis. The EquiLend platform aims to increase efficiency by standardizing, centralizing and automating front and back office processes, while delivering global access to liquidity, reduced risk and scalability.
Investors include: Barclays Global Investors; Bear Stearns & Co. Inc.; Credit Suisse; The Goldman Sachs Group, Inc.; J.P. Morgan Chase & Co.; Lehman Brothers; Merrill Lynch; Morgan Stanley; Northern Trust Corporation; State Street Corporation; and UBS.
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