EquiLend, the global technology company for the securities finance, collateral and swaps industries, announced the addition of five new counterparties to its NGT securities finance trading platform: DZ Bank AG, E*Trade, Janney Montgomery Scott, Matsui Securities and TD Ameritrade.
NGT is EquiLend’s multi-asset class trading platform for the securities finance marketplace, on which more than 100 firms worldwide are now actively trading.
Average daily transaction notional on NGT exceeded $80 billion in 2019 across more than 50,000 trades each day. NGT users are based in more than 30 cities globally.
Brian Lamb, CEO of EquiLend, says: “We are pleased to welcome these five valued new clients from around the globe to NGT, the securities finance industry’s only true trading community. Firms that conduct their trading on NGT reap the benefits of fully automated, algorithmic trading leveraging our artificial intelligence technology.”
Paul Lynch, Global Head of Products, EquiLend, says: “We have seen explosive growth in electronic trading in the global securities finance market in recent years as market participants recognize the value NGT brings in workflow efficiency. Additionally, especially as regulators are requiring more transparency into market activity, firms are increasingly finding manual, bilateral trading to be a barrier to profitability. NGT offers firms not only streamlined workflow but unrivaled access to their lending and borrowing counterparties.”
NGT, which launched in 2015, reinvented the securities finance trading paradigm by offering centralized access to unparalleled liquidity. NGT increases trade-level transparency, improves workflow automation and generates efficiencies market wide. NGT supports all types of securities finance instruments, including securities lending, repo and collateral transactions.
A recent analysis showed that trades executed on NGT have a far greater matched rate than those booked manually and have less risk of input errors, which will support firms’ Securities Financing Transactions Regulation (SFTR) and Central Securities Depositories Regulation (CSDR) requirements.
EquiLend has a long history of bringing automation to traditionally bilateral finance markets, having first launched automated securities finance trading in 2001. Swaptimization, EquiLend’s swaps trading platform, went live in December 2019, and EquiLend’s Collateral Trading platform is set to go live in February 2020.