EquiLend announce DLT solution to combat recon inefficiencies
13 July 2022 US
Image: AdobeStock/leonid
EquiLend has announced a technology programme that will include the use of distributed ledger technology to address reconciliation challenges in the securities finance industry.
The programme, branded 1Source, aims to use emerging technologies to develop a common record, or “single source of truth”, to support trade processing across the transaction lifecycle.
Emerging out of the Digital Transaction Working Group, which is convened by EquiLend, the 1Source programme will initially tackle the challenge of eliminating reconciliation breaks and associated settlement fails in securities finance, which the Working Group has identified as the priority issue for the sector owing to their high cost and disruptive effect.
EquiLend indicates that, in building this solution, it will deliver a centralised DLT-based platform that will act as a “single source of truth” for securities finance lifecycle events and a universal source of data for the industry. This, it says, will support operating procedures that will provide predictable and consistent results for market participants.
The service is currently in its design phase, with Working Group members providing feedback into the design and testing of the platform.
Gary Klahr, EquiLend’s director of client relationship management, says "Reconciliation and resulting trade failures are clearly amongst the most immediate challenges affecting the industry, but the scope of this initiative is not limited to solving this one problem.
“We are taking a future-proof approach to this issue which ultimately means solutions that are developed to solve problems today should serve as a technological platform to eradicate future issues and help generate opportunities."
EquiLend’s chief information officer Ken DeGiglio, indicated that the securities finance industry has been treating the symptoms of its costs and inefficiencies for many years rather than addressing its root cause.
He indicates that the 1Source initiative creates an opportunity to adopt new technology that will enable the industry to “completely reimagine how platforms work and share information, how counterparties interact and how true, single source data can be experienced”.
Brian Lamb, CEO of EquiLend, says that this programme provides a “once in a generation opportunity to rethink the use of resources in securities finance”.
“EquiLend 1Source will result in extraordinary savings industry-wide through technological efficiencies and the opportunity to redeploy human capital into more productive and profitable workstreams,” says Lamb.
For a more detailed evaluation of the use of DLT in securities finance, refer to SFT Issue 306, p 22ff.
The programme, branded 1Source, aims to use emerging technologies to develop a common record, or “single source of truth”, to support trade processing across the transaction lifecycle.
Emerging out of the Digital Transaction Working Group, which is convened by EquiLend, the 1Source programme will initially tackle the challenge of eliminating reconciliation breaks and associated settlement fails in securities finance, which the Working Group has identified as the priority issue for the sector owing to their high cost and disruptive effect.
EquiLend indicates that, in building this solution, it will deliver a centralised DLT-based platform that will act as a “single source of truth” for securities finance lifecycle events and a universal source of data for the industry. This, it says, will support operating procedures that will provide predictable and consistent results for market participants.
The service is currently in its design phase, with Working Group members providing feedback into the design and testing of the platform.
Gary Klahr, EquiLend’s director of client relationship management, says "Reconciliation and resulting trade failures are clearly amongst the most immediate challenges affecting the industry, but the scope of this initiative is not limited to solving this one problem.
“We are taking a future-proof approach to this issue which ultimately means solutions that are developed to solve problems today should serve as a technological platform to eradicate future issues and help generate opportunities."
EquiLend’s chief information officer Ken DeGiglio, indicated that the securities finance industry has been treating the symptoms of its costs and inefficiencies for many years rather than addressing its root cause.
He indicates that the 1Source initiative creates an opportunity to adopt new technology that will enable the industry to “completely reimagine how platforms work and share information, how counterparties interact and how true, single source data can be experienced”.
Brian Lamb, CEO of EquiLend, says that this programme provides a “once in a generation opportunity to rethink the use of resources in securities finance”.
“EquiLend 1Source will result in extraordinary savings industry-wide through technological efficiencies and the opportunity to redeploy human capital into more productive and profitable workstreams,” says Lamb.
For a more detailed evaluation of the use of DLT in securities finance, refer to SFT Issue 306, p 22ff.
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