Provable Markets LLC (Provable Markets) is proud to announce its role as an Approved SFT Submitter for The Depository Trust & Clearing Corporation’s (DTCC) proposed Securities Financing Transactions (SFT) Clearing Service (SFT Clearing Service), set to launch in the third quarter of 2021, subject to regulatory approval. The proposed SFT Clearing Service, which supports central clearing and settlement services for overnight borrows and loans of equity securities, will be offered by National Securities Clearing Corporation (NSCC), the equity clearing subsidiary of DTCC.
In this capacity, Provable Markets will operate as an exchange layer for NSCC members and sponsored buy-side firms to source liquidity for centrally cleared borrows and loans. Engineers from Provable Markets are currently working with NSCC, actively testing capabilities in anticipation of the service’s launch in the fall.
“Provable Markets commends DTCC and their team on the thoughtful design of the SFT Clearing Service that will help participants extract the maximum value and benefits of a CCP-based solution,” said Matt Cohen, CEO and Co-Founder of Provable Markets. “We are honored to play such a vital role in a solution we believe will not only expand access to the market, but also provide the foundation for a stronger, more robust financing market structure overall.”
Provable Markets will provide subscribers access via Aurora, its alternative trading system (ATS) for cash and synthetic financing markets (subject to FINRA and SEC approval). Aurora seeks to set a higher standard for managing, trading, and optimizing collateral. The newly-constructed platform is designed to offer flexible levels of integration and interoperability for various user needs while maximizing efficiency for all. In supporting an additional channel of access via an ATS, Provable Markets is excited to work with DTCC and future participants of all sizes to foster adoption of the NSCC SFT Clearing Service.
“We thank Provable Markets for their partnership, and for their commitment to submitting transactions into our new SFT Clearing Service,” said Michele Hillery, General Manager of Equity Clearing and DTC Settlement Service at DTCC. “Centrally clearing equities lending and borrowing transactions will significantly enhance market access, provide balance sheet and capital savings opportunities for market participants, and reduce counterparty risk.”