Securities lending platform EquiLend has bought Automated Equity Finance Markets (AQS) and its securities lending technology systems.
EquiLend bought AQS, which will be rebranded to EquiLend Clearing Services, from PDQ Enterprises.
According to the company, the purchase will pave the way for “unprecedented access to central clearing services”.
Existing clients will be able to continue to use the service undisrupted to connect to the Options Clearing Corporation’s (OCC) Market Loan Program.
However, by the end of 2016, EquiLend intends to connect its trading and post-trade services, including Next Generation Trading, with AQS.
AQS CEO Pat Cestaro and co-founder Greg DePetris will remain as senior advisers to EquiLend regarding central counterparty (CCP)-related issues.
Brian Lamb, CEO of EquiLend, said; “Momentum has been building in the past two years in support of CCPs in the securities finance marketplace. Balance sheet costs, risk weighting and tougher capital-adequacy requirements have highlighted to the industry the potential benefits of using central clearing services.”
“This acquisition combines EquiLend’s broad client base, market expertise and trusted technology with Automated Equity Finance Markets’s proven CCP-based securities lending market technology.
“By providing seamless access to OCC’s Market Loan Program, the securities finance market now will have unprecedented access to central clearing services.”
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