With increasing volumes and tightening margins in the securities finance market, both lenders and borrowers are experiencing issues due to single-point failure. However, one way this problem can be solved is with automation. This is precisely what global fintech FIS has done with its new automated matching and execution platform.
The Securities Finance Matching platform uses smart automated matching technology to facilitate secure, scalable and cost-effective straight-through processing of securities finance trades. The innovative cloud-native solution will bolster resilience by providing a brand-new enhanced route to market. All the while, it will drive down costs and simultaneously increase efficiency.
Nasser Khodri, head of capital markets, FIS
Nasser Khodri, head of capital markets, FIS said: “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, minimise risks, and enhance returns.”
FIS’ new securities finance matching platform addresses these challenges by delivering the most economic match swiftly, accurately, and securely. The automated 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 will allow customers to achieve the greatest possible depth and liquidity in the market, all while enhancing risk management by mitigating single-point-of-failure risk.
The solution, the newest component of the FIS Securities Finance and Collateral Management product suite, is swiftly gaining interest among financial institutions, with many UK clients expected to come on board in the coming months. Non-UK institutions will be able to join the Platform with the planned expansion into EU and US markets, pending additional regulatory approvals.
The post Automation is the Key to a Better Securities Finance Trade Experience appeared first on The Fintech Times.
