Provable Markets Completes First STP Novation of Existing Bilateral Stock Loan Into NSCC’s SFT Clearing Service in Real-Time, Increasing Operational Efficiency
2024年6月24日 - 9:00PM
ビジネスワイヤ(英語)
Provable Markets today announced the successful, real-time
novation of a pre-existing bilateral transaction into DTCC’s
National Securities Clearing Corporation’s (NSCC) Securities
Financing Transaction (SFT) Clearing Service, leveraging Provable
Markets’ Alternative Trading System (“ATS”), Aurora. NSCC’s SFT
Clearing service provides central clearing and settlement for
overnight borrows and loans of equity securities.
In this first use case for novation, an outstanding bilateral
transaction was routed to Provable’s ATS for confirmation and then
forwarded to NSCC’s SFT Clearing service for processing. In doing
so, NSCC became the lender to the borrower and the borrower from
the lender. The joint offering enabled novation to be completed in
real-time, with minimal operations intervention, and without the
need to recall and return the outstanding trade. In addition,
Provable’s ATS provided further downstream processing in near-real
time to the respective clients’ books and records systems through
its role as an NSCC Approved SFT Submitter.
In conjunction with Provable’s broader offering, this workflow
now manages both cleared and uncleared activity in one place,
providing maneuverability on demand across settlement types as
market dynamics fluctuate.
Matt Cohen, CEO of Provable Markets commented, “It’s hard to
underscore the importance of completing this novation, only made
possible through detailed and thoughtful collaboration between
Provable Markets, DTCC, and our clients. Novation often carries the
stigma of being extremely difficult to complete between all parties
to a transaction. In contrast, capitalizing on the benefits of
clearing in near-real time can be a game-changer, opening up
tangible possibilities for participants of all sizes to realize
immediate ROI at a time when capital relief optimization and
operational excellence are of utmost importance to operate
efficiently in today’s market landscape.”
John Vinci, Managing Director and Head of Securities Finance and
Collateral Management at DTCC, added, “DTCC is pleased to
successfully complete the first novation of an existing bilateral
stock loan into NSCC’s SFT Clearing service with assistance from
Provable Markets and its Aurora platform. The SFT Clearing service
aims to provide NSCC members with the ability to offset their
balance sheets through novation to NSCC, including existing NSCC
members as well as their institutional clients. We look forward to
continuing our work with Provable Markets to deliver our clearing
capabilities via our SFT offering to an even larger community of
members.”
About Provable Markets
Provable Markets is a member of FINRA and SIPC, operator of
cloud-native Alternative Trading System Aurora, and is regulated by
the US Securities and Exchange Commission.
Aurora offers front-to-back trade, lifecycle, books and records,
and post-trade solutions delivering execution optimization,
operational efficiencies, and risk reduction across the value
chain.
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