Goldman Sachs has joined EquiLend’s distributed ledger technology platform 1Source, which tracks post trade changes in securities lending transactions. The investment bank, which is also a minority shareholder in EquiLend, joins BNY and the National Bank of Canada on the platform, both of whom began transmitting live transactions onto 1Source a year ago.
EquiLend already provides a record of securities lending trades in its conventional system, but currently each counterparty copies the details to internal systems. The challenge arises with changes. Rates for a securities lending contract often fluctuate, and sometimes securities have to be reallocated or returned because the underlying stock is sold. Every change is logged separately by each party, often leading to mismatches that can result in trade breaks, which are especially problematic since settlement moved to T+1. 1Source provides a shared private ledger of agreed transactions and changes, removing the need for manual reconciliations. It is built on Digital Asset’s Canton technology, a private permissioned network.
“We are excited to welcome Goldman Sachs, one of the industry’s largest borrowers, onto the 1Source platform,” said Rich Grossi, CEO of EquiLend. “Their involvement will drive greater platform benefit by reducing costs and increasing operational efficiency across the community of participants.”
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