EquiLend, the major securities finance platform owned by the industry, is planning to launch a blockchain-based platform, 1Source, to hold the golden record of securities lending transactions. Initially, the goal is to eliminate the reconciliation of securities lending transactions. But as we’ll see, it could be an essential step in reducing securities settlement times.
The EquiLend platform currently processes $2.8 trillion in trades monthly and is backed by the likes of Bank of America, BlackRock, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, State Street and others.
Despite EquiLend’s platform being used to agree on securities lending trades digitally, subsequently there are a surprising amount of manual processes when changes are made. Those life cycle events – such as price changes, fee changes, or a partial return of the borrowed securities – are sometimes mismatched.
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