The securities finance industry is an intricate and constantly evolving sector, grappling with the challenges posed by regulatory adjustments and market demands. Among the primary concerns for market participants is the imperative to optimise inventory, meet margin funding requirements, and explore new revenue-generating opportunities. However, the presence of outdated systems has posed a major impediment to achieving a unified view of securities finance activities, creating business silos and impeding the interoperability necessary to keep pace with the industry’s dynamic needs.
Moreover, the stringent regulatory landscape has added to the complexity and cost pressures faced by market participants. Legacy systems, with their inflexibility and lack of shared oversight, present heightened risks that firms cannot afford in today’s fiercely competitive environment. This is where EquiLend Spire becomes integral, providing a comprehensive solution that offers a holistic view across all internal business units and counterparties.
EquiLend Spire is structured to streamline the entire securities finance lifecycle, equipping clients with a competitive advantage in navigating fluctuating collateral pressures, interest rates, and liquidity management for cost efficiency amid revenue generation efforts. The platform offers a trading view that supports the development of a sector that is adaptable to change, fuelling data exchange, risk management, and automation capabilities that pave the way for significant advancements in the industry.
From pre-trade to post-trade, EquiLend Spire’s technological integrations underscore the benefits of agile technology over siloed legacy systems. The platform offers a nuanced approach to collateral and inventory management, and its Risk Resolution Suite (R2S) unifies recalls, returns, and settlement monitoring for a comprehensive view of potential risks to settlement. Additionally, EquiLend Spire facilitates real-time communication of trade information, ensuring accurate records and enabling T+1 settlement.
In terms of regulation, EquiLend Spire has the capability to seamlessly adapt to new requirements and supports compliance with current and upcoming regulations. By integrating with EquiLend’s Reg Tech Solutions, the platform ensures complete and accurate trade reporting, providing a detailed audit for the entire lifecycle of a trade and ensuring operational integrity and adherence to regulatory standards.
The introduction of distributed ledger technology (DLT) to the securities finance sector through EquiLend 1Source presents further opportunities to simplify the challenges faced by the industry. This technology aims to create a single source of truth for the securities finance market, aiming to eradicate reconciliation and address and flag reconciliation issues.
EquiLend Spire is positioned to drive the future of securities finance by delivering fluidity to the industry. The networked effect of the EquiLend ecosystem and EquiLend Spire is poised to bring together every aspect of securities finance and deliver the greatest benefit to clients. With its comprehensive and innovative approach, EquiLend Spire is set to revolutionise the securities finance industry, providing market participants with the tools they need to thrive in a rapidly evolving market.