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Markit joins forces with SL-x for sec lending
09 October 2013
The two firms signed agreement to have seamless access across their platforms for the securities lending and borrowing marketplace
New electronic trading business SL-x has joined forces with Markit Securities Finance to allow joint customers to have seamless access across both platforms.
The two firms have signed an agreement to enable this for the securities lending market. David Carruthers, managing director and co-head of securities finance at Markit, said the move will help improve borrowers’ and lenders’ workflow and decision making.
Customers of Markit that use SL-x’s solution will have access to real-time data from SL-x and also Markit’s securities finance data and analytics.
SL-x’s electronic trading platform has yet to be launched and is still subject to regulatory approval. It is due to launch in 17 European markets later this year to provide what SL-x calls a “new marketplace for stock lending transactions”.
The firm announced recently that it would clear trades in Germany, Switzerland, France, Holland and Belgium through Eurex Clearing.
SL-x claimed that its technology will enable securities lending trades to be cleared through central counterparties. It also claimed to offer market participants potential reductions in regulatory capital of more than 90%, cut counterparty credit risk while reducing overall operating costs.
But participants will also be able to use the platform for their OTC business, said SL-x.
The securities lending market has for the most part resisted being pushed onto central clearing because agent lenders and their beneficial owner client say there is very little cost benefit to move away from the OTC model.