Provable Markets facilitates first transaction on DTCC’s SFT Clearing Service
11 October 2022 US
Image: daviles/stock.adobe.com
Provable Markets has confirmed the completion of the first securities lending transaction cleared through the Depository Trust and Clearing Corporation’s (DTCC’s) new Securities Finance Transaction (SFT) Clearing Service.
The trade was executed through the firm’s SEC registered alternative trading system (ATS) Aurora and centrally cleared and settled via the SFT Clearing Service on 6 October.
Provable Market’s connectivity and integration from the FIS Securities Lending Processing Platform was leveraged to ensure that the positions were accurately reflected in Loanet Books & Records systems for the lender and borrower, in near-real time.
According to Provable Markets, Aurora is one of two Approved SFT Submitters for the DTCC’s new service, and the only regulated access point.
Aurora provides a full suite of functionality for users — from traditional workflows to order book style functionality — and aims to bring central order book style trading to the securities lending market.
DTCC announced today that its subsidiary, the National Securities Clearing Corporation (NSCC), went live with the new Clearing Service. This service supports the central clearing of SFTs between NSCC full-service members, as well as the central clearing of clients’ SFTs intermediated by sponsoring members or agent clearing members.
Commenting on the announcement, Matthew Cohen, CEO of Provable Markets, says: “We are beyond ecstatic to have facilitated the first ever transaction cleared through the DTCC’s SFT Clearing Service.
“This was only made possible through tremendous work by the entire Provable team and, what we hope is, the establishment of a new standard of cooperation, coordination, and teamwork among market infrastructure players to leverage relative strengths for the ultimate benefit of our shared customers.”
Cohen indicates that the company will remain “hyper focused” in elevating the securities finance market structure, working in concert with its respective peers in all facets. Provable Markets will continue to expand this offering by “furthering our commitment to being an open, independent and client driven part of the broader ecosystem”.
Laura Klimpel, DTCC general manager of Fixed Income Clearing Corporation (FICC) and head of SIFMU business development, adds: “Centrally clearing SFTs has the potential to transform the securities lending market for the better, with benefits including new borrowing and lending opportunities for a wide range of counterparties, balance sheet and capital optimisation opportunities, reduced operational burdens such as Agent Lender Disclosure (ALD), and lowered systemic risk."
The trade was executed through the firm’s SEC registered alternative trading system (ATS) Aurora and centrally cleared and settled via the SFT Clearing Service on 6 October.
Provable Market’s connectivity and integration from the FIS Securities Lending Processing Platform was leveraged to ensure that the positions were accurately reflected in Loanet Books & Records systems for the lender and borrower, in near-real time.
According to Provable Markets, Aurora is one of two Approved SFT Submitters for the DTCC’s new service, and the only regulated access point.
Aurora provides a full suite of functionality for users — from traditional workflows to order book style functionality — and aims to bring central order book style trading to the securities lending market.
DTCC announced today that its subsidiary, the National Securities Clearing Corporation (NSCC), went live with the new Clearing Service. This service supports the central clearing of SFTs between NSCC full-service members, as well as the central clearing of clients’ SFTs intermediated by sponsoring members or agent clearing members.
Commenting on the announcement, Matthew Cohen, CEO of Provable Markets, says: “We are beyond ecstatic to have facilitated the first ever transaction cleared through the DTCC’s SFT Clearing Service.
“This was only made possible through tremendous work by the entire Provable team and, what we hope is, the establishment of a new standard of cooperation, coordination, and teamwork among market infrastructure players to leverage relative strengths for the ultimate benefit of our shared customers.”
Cohen indicates that the company will remain “hyper focused” in elevating the securities finance market structure, working in concert with its respective peers in all facets. Provable Markets will continue to expand this offering by “furthering our commitment to being an open, independent and client driven part of the broader ecosystem”.
Laura Klimpel, DTCC general manager of Fixed Income Clearing Corporation (FICC) and head of SIFMU business development, adds: “Centrally clearing SFTs has the potential to transform the securities lending market for the better, with benefits including new borrowing and lending opportunities for a wide range of counterparties, balance sheet and capital optimisation opportunities, reduced operational burdens such as Agent Lender Disclosure (ALD), and lowered systemic risk."
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