FIS has launched its new automated matching and execution platform for securities finance trades in the UK. It uses smart automated matching technology for secure, scalable and cost-effective straight-through processing of securities finance trades.
The cloud-native solution seeks to bolster resilience by providing a brand-new enhanced route to market that mitigates single-point-of-failure risk.
With increasing volumes and tightening margins in the securities finance market, higher levels of automation are crucial for both lenders and borrowers of all sizes, who are looking to drive down costs and increase efficiency. The solution identifies the best-match scenario by automating the evaluation of multiple factors involved in securities trading including fee or rebate rate, capital requirements, transaction and reporting costs, as well as counter-party trading patterns.
These enhanced capabilities seek to help customers to achieve the greatest possible depth and liquidity in the market, all while enhancing risk management by mitigating single-point-of-failure risk.
Nasser Khodri, head of Capital Markets at FIS, said in a statement: “In an industry where margins are tightening and market volumes are increasing, efficiency and automation have become paramount. Lenders and borrowers have been searching for a service provider that can offer superior, automated matching services, reducing manual intervention for the most economical outcome. FIS’ new solution, coupled with our scale and industry expertise, will be transformative in securities lending, and by unlocking financial technology to the world we will be helping these financial institutions to reduce costs, minimize risks, and enhance returns.”
UK clients are expected to come on board in the coming months while non-UK institutions will be able to join the platform with the planned expansion into EU and US markets.