EquiLend announced today that their clients have utilized the EquiLend platform to execute equity trade transactions which were centrally cleared via the OCC (Options Clearing Corporation).
These landmark transactions illustrate that EquiLend's automated securities finance platform can be used as a vehicle to facilitate central counterparty (CCP) transactions. Executing trades over the trading platform, EquiLend's broker clients centrally cleared the transaction via the OCC who bares the credit risk for the transaction.
Brian Lamb, CEO of EquiLend stated, "These trades illustrate that EquiLend has the mechanism in place to facilitate central counterparty transactions for the securities finance industry. The CCP model has been discussed extensively for years and we are delighted to respond to our clients' desire to move forward in this space using EquiLend's key platform drivers: liquidity, efficiency and risk mitigation. The success of any CCP is measured in its liquidity. All of EquiLend's trading services, whether it is AutoBorrow, Trade2O or Equity for Equity can help deliver that liquidity, making it the benchmark for all securities finance trading."