EquiLend commences with 1Source testing
14 September 2023 US
Image: KR_Studio/stock.adobe.com
EquiLend has commenced with the pilot phase of its anticipated distributed ledger technology (DLT)-based 1Source system, which will go live across the market in 2024.
The global technology, data and analytics firm says a number of agent lenders and broker-dealers within the securities lending industry are among those participating in the pilot.
The EquiLend 1Source ledger will retain a central record of the agreements made between counterparties in a securities lending transaction.
It aims to eliminate mismatched trade details — which the firm says is common in existing workflow — that are currently resolved only through manual, costly reconciliation processes.
The system was first announced in July 2022 as a technology programme that would incorporate emerging technologies to develop a common record, or a “single source of truth” to support trade processing across transaction lifecycle.
According to EquiLend, analysis conducted by an independent consulting firm found that ensuring all lifecycle events remain in sync for both counterparties in a transaction with EquiLend 1Source could reduce industry costs by up to US$100 million per year.
Commenting on the announcement, EquiLend’s chief information officer Ken DeGiglio says: “When we developed the concept for EquiLend 1Source with the industry’s Digital Transformation Working Group, our goal was to solve critical industry pain points and to empower businesses to continue to trade accurately and efficiently.
“The successful launch of the EquiLend 1Source pilot shows that the market shares that vision, and that a new, modernised and efficient chapter has begun for the securities finance industry.”
The global technology, data and analytics firm says a number of agent lenders and broker-dealers within the securities lending industry are among those participating in the pilot.
The EquiLend 1Source ledger will retain a central record of the agreements made between counterparties in a securities lending transaction.
It aims to eliminate mismatched trade details — which the firm says is common in existing workflow — that are currently resolved only through manual, costly reconciliation processes.
The system was first announced in July 2022 as a technology programme that would incorporate emerging technologies to develop a common record, or a “single source of truth” to support trade processing across transaction lifecycle.
According to EquiLend, analysis conducted by an independent consulting firm found that ensuring all lifecycle events remain in sync for both counterparties in a transaction with EquiLend 1Source could reduce industry costs by up to US$100 million per year.
Commenting on the announcement, EquiLend’s chief information officer Ken DeGiglio says: “When we developed the concept for EquiLend 1Source with the industry’s Digital Transformation Working Group, our goal was to solve critical industry pain points and to empower businesses to continue to trade accurately and efficiently.
“The successful launch of the EquiLend 1Source pilot shows that the market shares that vision, and that a new, modernised and efficient chapter has begun for the securities finance industry.”
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