AQS Sets out new initiatives
21 July 2010 New York
Image: Shutterstock
Quadriserv, Inc. today reported significant operational and commercial progress of its AQS securities lending market after one full year of operation. The Company marked the occasion with an operational update and expansion of securities lending initiatives.
AQS First-Year Data and Key Highlights:
Consistent growth in Membership, transactions and recognition within the industry
o 41 approved Member institutions
o Average GC order size approximately $3.2M
o Average Hard to Borrow order size approximately $650K
Expanded pool of securities eligible for clearing through AQS, now covering approximately 93% of all U.S. equity symbols on loan
Strong institutional support from lenders, borrowers and intermediaries
o On average, AQS has orders in: 95% of the S&P 500 and 70% of the Russell 3000
o Order flow statistics show orders placed in almost every AQS-eligible security
Successfully completed original goal of supporting sponsored access for direct borrowers and lenders in a regulated securities lending market, and will continue onboarding the sponsored access pipeline over the remainder of 2010.
Consistent with commercial and regulatory momentum driving over-the-counter products to central counterparty (CCP) trading venues, AQS matches lenders and borrowers in an exchange-like platform using automated liquidity and price discovery mechanisms. The resulting matched loans are processed through The Options Clearing Corporation (OCC), which provides central counterparty guarantees and trading anonymity. Post-transaction reporting capabilities include real-time reporting of executed transactions, stock and cash movements through the Depository Trust Company (DTC), as well as record keeping and reporting via industry standard formats.
Initiatives During Remainder of 2010
Since the launch of AQS, Quadriserv has engaged in a consistent dialogue with Members concerning preferences, new ideas and improvements for the operation of three market mechanisms: anonymous electronic order book, anonymous auction market, and anonymous bilaterally negotiated and maintained trade facility. This dialogue has served as a catalyst for the following initiatives during the second half of 2010:
Accelerated on-boarding of the sponsored access pipeline
Create and support dealer-centric products and services that leverage the existing
AQS infrastructure and will complement or supplement existing AQS liquidity pools
Expand AQS Market Data products and service beyond current Member base to include industry-wide distribution
Launch of two new, improved corporate websites:
o www.quadriserv.com: expanded views and commentary for the securities
lending industry, including near real-time market data insights, CCP-related
news and related regulatory and commercial developments
o www.tradeaqs.com: robust market data and full-service exchange-like website, including weekly market summaries and a real-time window into securities that are becoming more difficult to borrow.
Gregory Depetris, Co-Founder of Quadriserv, said, "Since inception, AQS has been steadfast in its commitment to a highly scalable, robust and institutional quality market for securities lending that services the entire trading community. We are pleased that our first full year operation has affirmed these values, as underscored by robust growth and the achievement of all of our major strategic priorities."
"Expansion of the sponsored access client base, coupled with the demonstrated success of the core AQS technology and operational infrastructure, has allowed us to preserve a business model that is progressive, responsive, flexible and inclusive of key market participants. To that end we have invested in the development and introduction of products that speak clearly to the continuing trend toward centralized clearing, transacting and reporting in the securities lending industry. These benefits include: improved capital efficiencies, enhanced risk management tools and innovative approaches to secured funding as well as advanced trade reporting services."
"Our success to date is a tribute to our employees, business partners, and Members. We look forward to accelerating our progress during the second half of the year and continuing our work to drive meaningful change in the securities lending market."
AQS First-Year Data and Key Highlights:
Consistent growth in Membership, transactions and recognition within the industry
o 41 approved Member institutions
o Average GC order size approximately $3.2M
o Average Hard to Borrow order size approximately $650K
Expanded pool of securities eligible for clearing through AQS, now covering approximately 93% of all U.S. equity symbols on loan
Strong institutional support from lenders, borrowers and intermediaries
o On average, AQS has orders in: 95% of the S&P 500 and 70% of the Russell 3000
o Order flow statistics show orders placed in almost every AQS-eligible security
Successfully completed original goal of supporting sponsored access for direct borrowers and lenders in a regulated securities lending market, and will continue onboarding the sponsored access pipeline over the remainder of 2010.
Consistent with commercial and regulatory momentum driving over-the-counter products to central counterparty (CCP) trading venues, AQS matches lenders and borrowers in an exchange-like platform using automated liquidity and price discovery mechanisms. The resulting matched loans are processed through The Options Clearing Corporation (OCC), which provides central counterparty guarantees and trading anonymity. Post-transaction reporting capabilities include real-time reporting of executed transactions, stock and cash movements through the Depository Trust Company (DTC), as well as record keeping and reporting via industry standard formats.
Initiatives During Remainder of 2010
Since the launch of AQS, Quadriserv has engaged in a consistent dialogue with Members concerning preferences, new ideas and improvements for the operation of three market mechanisms: anonymous electronic order book, anonymous auction market, and anonymous bilaterally negotiated and maintained trade facility. This dialogue has served as a catalyst for the following initiatives during the second half of 2010:
Accelerated on-boarding of the sponsored access pipeline
Create and support dealer-centric products and services that leverage the existing
AQS infrastructure and will complement or supplement existing AQS liquidity pools
Expand AQS Market Data products and service beyond current Member base to include industry-wide distribution
Launch of two new, improved corporate websites:
o www.quadriserv.com: expanded views and commentary for the securities
lending industry, including near real-time market data insights, CCP-related
news and related regulatory and commercial developments
o www.tradeaqs.com: robust market data and full-service exchange-like website, including weekly market summaries and a real-time window into securities that are becoming more difficult to borrow.
Gregory Depetris, Co-Founder of Quadriserv, said, "Since inception, AQS has been steadfast in its commitment to a highly scalable, robust and institutional quality market for securities lending that services the entire trading community. We are pleased that our first full year operation has affirmed these values, as underscored by robust growth and the achievement of all of our major strategic priorities."
"Expansion of the sponsored access client base, coupled with the demonstrated success of the core AQS technology and operational infrastructure, has allowed us to preserve a business model that is progressive, responsive, flexible and inclusive of key market participants. To that end we have invested in the development and introduction of products that speak clearly to the continuing trend toward centralized clearing, transacting and reporting in the securities lending industry. These benefits include: improved capital efficiencies, enhanced risk management tools and innovative approaches to secured funding as well as advanced trade reporting services."
"Our success to date is a tribute to our employees, business partners, and Members. We look forward to accelerating our progress during the second half of the year and continuing our work to drive meaningful change in the securities lending market."
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
