Clear Street launches trading system for securities lending market
01 December 2022 UK
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Clear Street has launched the Automated Trading Locates Allocation System (ATLAS) for the securities lending market.
ATLAS is a proprietary trading system that allocates stock loan inventory to incoming customer requests.
The system has been designed to allow customers to submit locate orders directly from their Order Management System via Clear Street’s FIX interface, or use its web portal.
Customers can maintain a unified view of all incoming locate requests and use Clear Street’s fully automated ReST API to submit locate requests, says the firm.
According to Madhu Subbu, managing director and head of securities finance technology at Clear Street, the locate request is priced in real-time based on the security’s various demand and supply characteristics, market events and inventory availability.
ATLAS responds with an offer and customers have the option to examine the price before accepting. Once the customer accepts the offer, ATLAS decrements the approved locate quantity from availability and the customer is able to enter a short sale order.
Clear Street’s trading system is one component of a broader mission by the firm to reimagine legacy workflows and silos that are expected to help increase access in the financial markets.
Olympus, the broader Clear Street Securities Finance Stack — of which ATLAS is a part — will expand to include real-time inventory availability and streaming borrow rates.
In addition, the firm plans to build a marketplace for stock loan, which is expected to aid Clear Street’s plan to modernise the market infrastructure across capital markets and improve market access for all participants.
Commenting on the new system, Subbu says: “ATLAS remedied the pain points of our original workflow. The new platform is more reliable and provides a modern user experience with better probability of customer requests being satisfied, especially when supply is tight.
“Internally, our trading desk is much more efficient in serving our clients than before. The team no longer spends precious time sifting through pages of information manually and they can react to market events in real-time. We have started to roll this out to some customers, who are happy with the modern user experience.”
ATLAS is a proprietary trading system that allocates stock loan inventory to incoming customer requests.
The system has been designed to allow customers to submit locate orders directly from their Order Management System via Clear Street’s FIX interface, or use its web portal.
Customers can maintain a unified view of all incoming locate requests and use Clear Street’s fully automated ReST API to submit locate requests, says the firm.
According to Madhu Subbu, managing director and head of securities finance technology at Clear Street, the locate request is priced in real-time based on the security’s various demand and supply characteristics, market events and inventory availability.
ATLAS responds with an offer and customers have the option to examine the price before accepting. Once the customer accepts the offer, ATLAS decrements the approved locate quantity from availability and the customer is able to enter a short sale order.
Clear Street’s trading system is one component of a broader mission by the firm to reimagine legacy workflows and silos that are expected to help increase access in the financial markets.
Olympus, the broader Clear Street Securities Finance Stack — of which ATLAS is a part — will expand to include real-time inventory availability and streaming borrow rates.
In addition, the firm plans to build a marketplace for stock loan, which is expected to aid Clear Street’s plan to modernise the market infrastructure across capital markets and improve market access for all participants.
Commenting on the new system, Subbu says: “ATLAS remedied the pain points of our original workflow. The new platform is more reliable and provides a modern user experience with better probability of customer requests being satisfied, especially when supply is tight.
“Internally, our trading desk is much more efficient in serving our clients than before. The team no longer spends precious time sifting through pages of information manually and they can react to market events in real-time. We have started to roll this out to some customers, who are happy with the modern user experience.”
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